How being a shareholder of a company is different from being a sole trader or a member of a partnership ?

Question

thanks in advance!

Answer 1

sole traders have more responsibility.

Answer 2

as a shareholder, as long as u dont own more than 50 percent of the business shares, you dont have a say in what happens with the business. you just own the rights to sell the shares whenever you want.

sole trader completely owns the business and decides what happens

partnership is has its decisions between two people

Answer 3

Shareholders are not liable for the debts or actions of the corporation.

Answer 4

Simply put, a shareholder is someone who has a stake in business bought via equity (in most cases being a stock). Shareholders finance the company and are somewhat responsible for the companies' loss and profits. Certain stocks enable shareholders to have voting rights whilst others do not. When companies issue shares, they are known as "public" since anyone from the general public can buy the shares.

A sole trader is someone who owns a business and is solely responsible for the profits/losses in the company. Sole traders have unlimited liabilty, that is, if their business goes into debt, they are solely responsible for it too. Sole traders take a very small portion of the business world because they can not finance as quick as public company.

Partnerships are similar, only that there are partners who have made an agreement to be responsible for the debts and profits. However, there is in most cases, one person "in charge". Partnerships almost always go wrong because the partners may find it difficult to agree on a decision. However, they do have their advantages:

- More ideas to the company

- If one person is sick, the other can simply take his/her place

- More capital

There is a lot more to these three categories, but this is the main fundamentals for each of the three.

Good luck~

Marvin the Martian