Edexcel-Forms of business 1.5 Flashcards
sole trader
A business that has a single owner
Sole trader Advantages
Easy
Inexpensive
Owner has complete control
Sole trader disadvantages
Unlimited liability
Limited access to finance
partnership
Two or more people join together to form a business
partnership advantages
Shared responsibility
More skills and knowledge
Increased access to finance
Partnership disadvantages
Unlimited liability
profits shared equally
Private limited company
ownership broken down into shares which can be sold specifically to family and friends
Private limited company advantages
Limited liability
Access to greater finance
professional image and reputation
private limited company disadvantages
More expensive
Time consuming
Annual reports have to be published
Franchising
individual buys rights to operate a business model from larger company
Social enterprises
Primary purpose to create social or environmental impact
Online businesses
Lower overhead costs and can operate anywhere.
Public limited company advantages
Access to capital
Greater public profile
Public limited company disadvantages
Increased liquidity
Extended decision making
Public limited company
Offer shares to the public and are typically listed on stock exchange
