Forms of business ownership

  • Created by: lisha1
  • Created on: 19-03-17 11:43
Whats a sole trader?
A sole trader is a singular person who owns a business.
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Whats a partnership?
A partnership is a business owned by two or more people.
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Whats a limited company?
A limited company is a business owned by shareholders.
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What is franchising?
Franchising is where people can buy into an existing business for the right to use that businesses ideas or products.
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What are the advantages of being a sole trader?
1. can make all the decisions 2. Easy to set up 3. reduced start up costs
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What are the disadvantages of being a sole trader?
1. Unlimited liability 2. they have complete responibility
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What are the advantages of a partnership?
1. someone to consult on business ideas 2. more investment
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What are the disadvantages of a partnership?
1. unlimited liability 2. disputes about business decisions
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What are the advantages of being a limited company?
1. limited liability 2. more funding
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What are the disadvantages of being a limited company?
1. the more people involved in the business the more disputes can happen
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What are the advantages of being a franchise?
1. using a well known and good business that's already been made 2. you dont need to know how to run the business as you are provided with training
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What are disadvantages of being a franchise?
1. you are told how to run the business 2. bad performances of other franchises can disrupt your franchises reputation
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Who is involved in the franchise and what do they do?
Franchisee= the person paying for a part of the businesses ideas/products Franchisor= the company letting people buy franchises of the business
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Other cards in this set

Card 2

Front

Whats a partnership?

Back

A partnership is a business owned by two or more people.

Card 3

Front

Whats a limited company?

Back

Preview of the front of card 3

Card 4

Front

What is franchising?

Back

Preview of the front of card 4

Card 5

Front

What are the advantages of being a sole trader?

Back

Preview of the front of card 5
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