Types of Organisations

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  • Organisation
    • Sole Traders
      • small businesses
        • Easy to set up
        • Self Managed
        • Keeps Profits
        • Long Hours
        • Unincorporated- owner bears all risk
        • Unlimited Liability- Business goes bust, sell everything you own
      • Plumbers/ Hairdressers
    • Partnerships
      • Two or more people
        • More Ideas
        • Shared work load
        • More Capital
        • Legally Responsible for other partners
        • Unincorporated
        • Unlimited Liability
        • More Disbutes
      • Solicitors/Doctors
    • Private Limited Companies (Ltd)
      • Owned by restricted shareholders
        • Limited Liability
        • incorporated
        • Expensive Setup
        • Legally Obligated to publish accounts
    • Public Limited Companies (PLC)
      • Anyone can buy shares
        • More Capital
        • Expansion
        • shareholders have little input
        • easy to takeover
        • Diseconomies of scale
        • Publish accounts
    • Franchises
      • Sell the rights to use their company name
        • Franchisee
          • established product- set up easy
          • Limited freedom
        • Franchisor
          • Increase Market Share
          • Lack of Control
    • Multinationals (MNC)
      • Operates in two or more countries
        • Can exploit Economies of scale
        • avoid trade restrictions
        • Job Creation
        • Different legal systems
        • Different tax regulations
        • Communication suffers

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