AccountingCode 9706
Types of business entity
What this topic asks you to be able to do
- what forms a business entity can take: sole trader; partnership; limited company (including public limited company (plc))
- the benefits and drawbacks of these business entity types
- the sources of finance and ways of funding open to each of these kinds of business entity, including: loans (secured and unsecured); bank overdrafts; paying by instalments; rental/leasing rather than buying; trade credit; and, for limited companies, the sources of finance listed in 1.5.4
- apply an understanding of business entity types when making relevant decisions