5. Liability Unlimited Liability If something goes wrong and Homer gets taken to court there is no limit to the amount he can be sued for He is personally responsible for ALL the debts Limited Liability Protected against being sued They can only take the amount that has been invested
6. How to become a limited liability company? Sell shares
7. PLC or an LTD can sell shares. Shareholders 25% What do shareholders want? What can Homer do with the investment? Homer 75%
8. PLC or an LTD can sell shares. Can sell a share of the business to raise money It means a business doesn't have to take out a loan to raise finance ‘Dividends’ must be given to shareholders which means less profit for the owner
9. Private Limited Company Homer can CHOOSE who to sell the shares to and decides to keep it in the family
11. LTDPLC PRIVATE LIMITED COMPANY A LIMITED number of people buy shares Choose who to sell shares to More control of the business PUBLIC LIMITED COMPANY The PUBLIC can buy shares Anyone can buy them
12. Debts Hairdressers Dividend General public Finance Decision making Unincorporated Shareholders Lawyer Stock market 2-20 people Control Incorporated
13. Homework Go to the blog www.dbsbusiness.blogspot.com Make notes from the powerpoint`