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A private limited company (Ltd) is a business owned by shareholders whose liability is limited to the amount they invested. Shares cannot be sold to the general public. This structure protects personal assets, gives the business a separate legal identity, and is the most popular form of incorporation in the UK.
A limited liability partnership (LLP) is a legal business structure where partners enjoy the tax flexibility of a traditional partnership while having their personal assets protected from business debts. It must be registered with Companies House and is popular among professional service firms like law practices and accountancy firms.
A partnership is a business owned and run by two or more people who share responsibility, profits, and losses. Partners typically have unlimited liability, meaning their personal assets are at risk if the business cannot pay its debts. Partnerships are common in professions like law, accountancy, and medicine, and they appear frequently across GCSE and A-Level Business Studies specifications.
A sole trader is a business owned and run by one person. The owner keeps all profits but faces unlimited liability, meaning personal assets are at risk if the business cannot pay its debts. It is the simplest and most common business structure in the UK, requiring no formal registration with Companies House.
Price elasticity is about how much people change what they buy when the price changes. If the price goes up and people stop buying a lot of it, we say it’s elastic. If the price changes but people still buy almost the same amount, it’s inelastic. It helps businesses understand how customers might react before they change prices.
