Types of Organisations
- Created by: Sasha Adamson
- Created on: 09-04-13 18:17
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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
- small businesses
- Partnerships
- Two or more people
- More Ideas
- Shared work load
- More Capital
- Legally Responsible for other partners
- Unincorporated
- Unlimited Liability
- More Disbutes
- Solicitors/Doctors
- Two or more people
- Private Limited Companies (Ltd)
- Owned by restricted shareholders
- Limited Liability
- incorporated
- Expensive Setup
- Legally Obligated to publish accounts
- Owned by restricted shareholders
- Public Limited Companies (PLC)
- Anyone can buy shares
- More Capital
- Expansion
- shareholders have little input
- easy to takeover
- Diseconomies of scale
- Publish accounts
- Anyone can buy shares
- Franchises
- Sell the rights to use their company name
- Franchisee
- established product- set up easy
- Limited freedom
- Franchisor
- Increase Market Share
- Lack of Control
- Franchisee
- Sell the rights to use their company name
- 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
- Operates in two or more countries
- Sole Traders
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