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Trishita Ghosh…read more

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Sole Trader
Sole trader is when there is only one owner, who has to
make all decisions. A sole trader has unlimited liability.
Advantages Disadvantages
Easy to set up- no complicated forms or They have unlimited liability.
procedures to follow.
They can make decision quickly. It can be difficult to raise money to start a
business or to expand later on.
Need less capital to set up. Ill health and holidays can affect the
All profits can be kept by sole traders. They have no one with whom to discuss
business decision.
The sole trader does not have to tell anyone They can find it difficult to compete with
except the inland revenue. large businesses in terms of price,
Sole traders are their own bosses.
They can provide personal attention…read more

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Partnershipinvolves between 2 and 20
Advantages Disadvantages
Easy to set up. Unlimited liability for the depts. of the
The amount of capital needed to start up the Profits must be shared.
partnership is often small.
Easier to raise extra capital when needed, as all Decision made by any one partner must be
the partners contribute. followed by all others.
Individual partners can specialise in certain Partners disagree about the running of the
areas. business.
Within the partnership, partners have others If a partner dies/ bankrupts the business
with whom to share problems and talk over dissolves.
ideas.…read more

Slide 4

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Franchiseis franchisee,
an agreement in which one business, the
buys the right to sell the goods
or services of another business.
Advantages Disadvantages
Business is based upon proven idea. It can be expensive.
Recognized brand name and trade Restrictions to how you run a
marks can be used. business.
The Franchisor gives you support The franchisor might go out of
You have exclusive rights I your Other franchisees can give the brand
territory bad reputation.
Its easier Difficult to sell a franchise.
Relationships with suppliers have All profits are shared with the
already been established. franchisor.…read more

Slide 5

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PLC- Public limited company can sell its
shares on the stock market
Advantages Disadvantages
Easy and inexpensive to set up. No share issues means lack of capital.
Ownership and control are closely No benefits from economies of scale.
connected. E.g.- Directors are the
main shareholders.
Small and less paper work than PLC's,
e.g.- decisions can be taken more
quickly.…read more

Slide 6

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LTD- Private limited company cannot sell its
shares on the stock market. Owners of a limited are not involved in
the running of a business.
Advantages Disadvantages
Raise large amount of capital (money) Become too large resulting in poor
from share issue. labour relations .
Benefit from economies of scale Conflict of interest between
shareholders and the Board of
Produce goods at lower unit cost. Possibility of takeovers because
shares can be bought by anyone.…read more

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