Business Ownership, Base Rates, Debt & Credit Ratings 1. Business Ownership – Importance Business ownership affects control, liability, taxes, profit sharing, ability to grow, and access to finance. 2. Types of Business Ownership A. Sole Trader – Owned by one person, simple to set up, full control. – Unlimited liability, harder to raise finance. B. Partnership – 2–20 owners, shared workload and skills. – Profit sharing, potential disputes, liability depends on type. C. Limited Company (Ltd) – Separate legal identity, limited liability, can raise more funds. – More regulation and administration. D. Public Limited Company (PLC) – Shares can be publicly traded, raises large finance. – High regulation, shareholder pressure. 3. Base Rate – Interest rate set by central banks. – High base rate: borrowing expensive, inflation falls. – Low base rate: borrowing cheap, economy grows. 4. Debt – Borrowed money to be repaid with interest. Personal debts: student loans,…