benefits of a sole trader:
- you keep the profits
- start up costs can be low
- you're in charge -> don't have to run things past other people
drawbacks of a sole trader:
- limited resources
- lack of community
- unlimited liability
1 of 7
benefits of partnerships:
- someone to help make decisions
- access to knowledge and skills
- reduced financial burden
drawbacks of partnerships:
- split profits
- less independence
- can cause arguments / disagreements
- slower decision making
2 of 7
benefits of a limited company:
- limited liability
- more capital available
- shares can be sold
drawbacks of a limited company:
- legal requirements
- shareholders have to approve if a shareholder sells shares
- less secrecy of finance
3 of 7
benefits for franchisees :
- support
- security
- bigger chance of the business being successful
- fewer decisions to make
drawbacks for franchisees:
- restrained by franchise agreement
have to pay franchise fees
4 of 7
benefits for franchisors :
- regular flow of income from franchisees
- shared risk
- rapid growth is possible
- high level of control
drawbacks for franchisors:
- franchise recruitment can be slow
- may have different aims and objectives than what the franchisees have
- selecting a wrong franchisee can ruin the company's reputation
5 of 7
Why is location important to a business?
It can attract more customers if it has lots of foot fall and is easy to access which can help attract future customers and increase profits.
drawbacks of partnerships:
- split profits
- less independence
- can cause arguments / disagreements
- slower decision making
Back
benefits of partnerships:
- someone to help make decisions
- access to knowledge and skills
- reduced financial burden
Card 3
Front
drawbacks of a limited company:
- legal requirements
- shareholders have to approve if a shareholder sells shares
- less secrecy of finance
Back
Card 4
Front
drawbacks for franchisees:
- restrained by franchise agreement
have to pay franchise fees
Back
Card 5
Front
drawbacks for franchisors:
- franchise recruitment can be slow
- may have different aims and objectives than what the franchisees have
- selecting a wrong franchisee can ruin the company's reputation
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