Types of Business Organisations

Businesses Today
Businesses are an essential feature of
macroeconomics
Britain is open for business

Department for Business Innovation and Skills

Public vs Private
Public
Government running a business to meet a public
need

Private
Individuals running a business to make a profit

Sole Trader
Going it alone
Get to keep all the profits but also liable for all the
debts

Partnerships
There are three types of partnerships:
Unlimited
Limited
Limited Liability

Unlimited Partnerships
Partnership Act 1890
Sharing of profits and debts
Hodson v Hodson [2009]

Partnership agreements
Written
Oral
Estoppel

Limited Partnerships
Limited Partnerships Act 1907
At least one person must have unlimited liability
Often used for investment funds

Opening a Business: Sole Traders, Ordinary and

Limited Partnerships

Open the business by opening your doors

Can register for VAT
Two basic rules
A place for business
Giving it a name

Natural and Juristic Persons

Natural persons
Human beings

Juristic persons
Corporations with the same rights as human
beings

Gilford Motor Co. Ltd. v Horne [1933]

Limited Liability Partnerships (LLPs)

Limited Liability Partnerships Act 2000
An LLP is a juristic person
Often used by professionals

Commencement of LLPs
Incorporation document
Then becomes officially certified

Companies
Incorporation as registered companies
People involved in companies
Shareholders
Directors
Company secretary

Governed by the Companies Act 2006

Starting a Company
Application for Registration
Registrar of Companies
Certificate of Incorporation

Public Sector
Public corporations are ran by the government to
service a social need.
These are very rare nowadays