Business Ownership

Franchise
1. Firms successful business model and their name
2. Pay the firm to use their name and sell their stuff.
3. Examples
  1. The twilight saga
  2. The hunger games
  3. Mcdonalds
4. Franchiser
  1. Advantages
    1. More money
    2. Business grows faster
  2. Disadvantages
    1. Badly run
      1. Bad reputation
5. Franchisee
  1. Advantages
    1. Support of the franchiser
      1. Staff training
    2. Good franchiser reputation means good buisness
    3. Franchiser provides advertising, packaging and equipment
  2. Disadvantages
    1. Don't have any control
    2. Expensive to buy into the company
    3. Franchiser fails and so does franchisee
Sole trader
1. Owned by one person
2. Individual
3. Single
4. Advantages
  1. Own boss
  2. May not need to employ staff
  3. Easy to set up, with few starting costs
5. Disadvantages
  1. Difficult to take time off
  2. Unlimited liability, sell possesions to get out of debt
  3. No sharing risks, or anyone to help with decision making.
Partnership
1. 2 people
2. Dual
3. 3-1=2
4. Advantages
  1. Time and cost commitments are shared
  2. More money can be raised
  3. Wider range of skills, talents and ideas
5. Disadvantages
  1. Profits have to be shared
  2. Harder to close down
  3. Partners might argue
Limited company
1. Liability of members of the company is limited to what they have invested
2. Can't use personal belongings to pay off debt
3. Only the money put in by the buyers
4. Public
  1. Advantages
    1. Value of shares go up
    2. Not personally responsible for debt
    3. More access to finance
  2. Disadvantages
    1. Loss of individual control.
    2. Value of shares go up
    3. Threat of being taken over
5. Private
  1. Advantages
    1. Share of profits
    2. Easier to raise funds
    3. Shareholders aren't responsible for debt
  2. Disadvantages
    1. Complicated to set up
    2. Control of the company is spread out
    3. Employees might not be committed

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Business Ownership

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