types Of Businesses Flashcards
becoming multinational organisation
advantages
Cheaper premises labour and production costs
lower transportation costs
lower tax rates
franchise
advantages
already well known
less risky
reputation already established
Becoming multi national organisation
disadvantages
cultural differences
language barriers
image/reputation damaged if seen as taking advantage of host country
host country rules and regulations
private limited company
disadvantages
high set up costs
harder to motivate and control workers
must registered with registrar of companies
private limited company
Advantages
owner can retain control
able to raise money easier
limited liability
public limited company
disadvantages
disagreement on how to run
threat of takeover
hard to pursue other objectives other than increase profit
partnership
disadvantages
unlimited liability
profit shared between partners
may not always agree
partnership
advantages
more money to finance the business
different partner = different skills
workload shared
sole trader
disadvantages
no one to cover for them
difficult to raise finance
unlimited liability
heavy workload
sole trader
advantages
easy to set up
keeps all the profit
some trader makes all the decisions
public limited company
advantages
easier to grow and diversify
raise money easily through the selling sticks on stock exchange
