Retained Profit
Retained Profit in a Nutshell Retained profit is the portion of a business’s net profit kept within the company rather than paid out to owners or shareholders. It serves as an internal…
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10 min
Spec point: A-Level Edexcel – 2.1 Raising Finance
Every note that covers this specification point.
Owner’s Capital
Owner’s Capital in a Nutshell Owner’s capital is the money or assets that a business owner personally invests into their business. It represents the financial stake the owner holds and appears on…
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10 min
Internal Sources of Finance
Internal Finance in a Nutshell Internal finance refers to money a business raises from within itself, such as retained profit, sale of assets, or owner’s capital. It avoids external borrowing, meaning no…
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9 min
Sources of Finance
Sources of Finance in a Nutshell Sources of finance refer to the different ways a business can raise money to fund its operations, growth, or start-up costs. These include internal options like…
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10 min
Public Limited Companies
A public limited company (PLC) is an incorporated business that sells shares on a stock exchange to the general public. It must have a minimum share capital of £50,000, at least two directors, and a qualified company secretary. PLCs can raise large amounts of capital but face strict regulation, public scrutiny, and the risk of hostile takeovers.
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18 min
Private Limited Company
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.
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9 min
Limited Liability Partnership
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.
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11 min
Partnerships
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.
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11 min
Sole Trader
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.
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11 min