types of businesses Flashcards
A business owned and operated by 1 person. (annabel likes)
Sole trader
A business owned and operated by 2 to 20 people
Partnership
A business which has a separate legal entity from it’s shareholders
company
A business or person that buy the right to use the name, products and services of an existing business
franchise
A business which has at least 5 members with shared management and equal voting rights.
cooperative
2 businesses with unlimited liability
Sole trader and Partnership
2 businesses with limited liability
Company and Cooperatibve
simplest and cheapest to establish.
Owner has control over all decisions.
Advantages of Sole trader
Simple and inexpensive to set up.
Share of losses
Advantages of Partnership
Can raises alot of money through shareholders
Adventages of company
Advertising and marketing support.
Advantages of Franchise
No age limit of members.
Equal voting rights
Advantages of Cooperative
Owner suffers all losses.
Difficult to leave or take holidays
Disadvantages of Sole trader
Progits must be shared between patners
Disadvantages of Partnership
Expensive to set up and operate.
Complex reporting requirements
Disadvantages of company
