FORMS OF BUSINESS OWNERSHIP PARTNERSHIPS PARTNERSHIPS –Unlimited Partnership –Limited Partnership CORPORATIONS CORPORATIONS –Private Limited Company –Public Limited Company

PRIVATE LIMITED COMPANY between 2 and 50 shareholders; “Ltd” after its name; a small company; not quoted on the Stock Exchange; shares bought and sold privately; shares only sold with the agreement of all shareholders; minimum capital: € ; fast procedures for the constitution of the company; shareholders’ liability limited to the amount of the original investment. in case of bankruptacy, shareholders’ private possessions not touched; shareholders take no decisions in the running of a company decisions made by the managing director.

PUBLIC LIMITED COMPANY at least 2 shareholders no upper limit on the number of shareholders; usually a very large company; “Plc” after its name; quoted on the Stock Exchange; shares sold with no restrictions; minum capital: €120,000; Shareholders’ liability limited to the amount of the original investment. in case of bankruptacy, shareholders’ private possessions not touched; shareholders take no decisions in the running of the company; generally decisions made by the managing director; Shareholders’ representatives elected in the board of directors annually.

UNLIMITED and LIMITED Partnerships Advantages Risks and responsibilities are shared between partners; Risks and responsibilities are shared between partners; Partners specialize in their own area of the business; Partners specialize in their own area of the business; More finance can be raised because there are more owners investing in the business; More finance can be raised because there are more owners investing in the business; Disadvantages Profits are shared between partners; Profits are shared between partners; The decision-making process can be slow due to other partners disagreeing; The decision-making process can be slow due to other partners disagreeing; A partnership is terminated when a partner dies or a new one enters and therefore a new partnership has to be formed. A partnership is terminated when a partner dies or a new one enters and therefore a new partnership has to be formed.

UNLIMITED PARTNERSHIP All partners are liable for the debts of the firm; All partners are liable for the debts of the firm; If the business goes bankrupt, they are all financially responsible and may lose their personal assets; If the business goes bankrupt, they are all financially responsible and may lose their personal assets;

LIMITED PARTNERSHIP Some partners contribute only the capital to the business. Some partners contribute only the capital to the business. They do not have an active role in the running of the business. They do not have an active role in the running of the business. They are liable only for the amount of money they initially invested in the business. They are liable only for the amount of money they initially invested in the business. At least one partner, the general or unlimited partner, must have liability without limitation. At least one partner, the general or unlimited partner, must have liability without limitation.

OUR PROPOSALS PRIVATE LIMITED COMPANY Minimum capital: € ; Fast procedures for the constitution of the company; Liability of each shareholder is limited to the amount of the original investment. LIMITED PARTNERSHIP Most of the partners are liable only for the amount of money they initially invested in the business. Most of the partners are liable only for the amount of money they initially invested in the business. Risks and responsibilities can be shared between partners; Risks and responsibilities can be shared between partners; Each partner may specialize in their own area of the business; Each partner may specialize in their own area of the business; More finance can be raised because there are more owners investing in the business. More finance can be raised because there are more owners investing in the business.