Forms of Business Ownership - Cambridge Nationals
- Created by: Alice Poppy
- Created on: 04-01-20 10:51
View mindmap
- Parnership
- Examples: Estate agents, accountants, solicitors
- Decision making can be time consuming as all partners need to be consulted, potential for disagreement
- A business that is owned and controlled by two or more people
- Partners each bring different skills to the company, the responsibility and risks are shared among the partners
- Forms of Business Ownership
- Franchise
- Initial and ongoing costs of running a franchise are not cheap, as the franchisor may take a percentage of the profits or 'royalty fees', the franchisees are not allowed to input their own ideas and must stick to the marketing activities of the franchisee
- A business organisation where the franchisor (the owner of the business idea) grants a licence for a franchisee to use their brand name and idea
- Examples: Starbucks, Pizza Hut, McDonalds
- Limited business knowledge is required as the business model is already created, an easy way to raise finance as the brand is already known by consumers
- Franchise
- Easy to set up, owner makes all business decisions and keeps all profits
- Sole Trader
- A business owned and controlled by one person
- Examples: Plumber, Electrician, Plasterer
- Difficult of business to grow, banks are less likely to loan money, unlimited liability
- Forms of Business Ownership
- Franchise
- Initial and ongoing costs of running a franchise are not cheap, as the franchisor may take a percentage of the profits or 'royalty fees', the franchisees are not allowed to input their own ideas and must stick to the marketing activities of the franchisee
- A business organisation where the franchisor (the owner of the business idea) grants a licence for a franchisee to use their brand name and idea
- Examples: Starbucks, Pizza Hut, McDonalds
- Limited business knowledge is required as the business model is already created, an easy way to raise finance as the brand is already known by consumers
- Franchise
- Sole Trader
Similar Business Studies resources:
Teacher recommended
Teacher recommended
Teacher recommended
Teacher recommended
Comments
No comments have yet been made