Types of businesses

Types of businessesSole proprietorship: A business run by only one person. Things to remember: unlimited liability, and all work is done by one person. Almost impossible to take holidays. Private data except from HM Revenue and customs. Easy to set up.Partnership: The same as a sole proprietorship but is run by 2-20 partners. Things to remember: easy to set up and expandable unlimited liability, . If arguments arise it is very difficult to settle who would take what part of the business.Public Limited company (PLC): A business in where anyone can buy shares. Things to remember: Very expandable and easy to attract shareholders. Limited liability. Must have by law at least £50,000 capital to start up. And all data is to be public. Giving information may cost £500 a year and reports are very expensive. The minimum cost for a PLC is £100,00Private Limited Company (LTD): A business in which only the owners can be shareholders. Things to remember: Limited liability, can start the company with minimum £0.01. More control than a PLC. Can't attract attention from extra shareholders as it can't be on a stock market. All data can be seen by the public and is very expensive to distribute.Worker based Cooperative: A business in which it's aim is to not to make a profit but to benefit workers. Things to remember: A board of directors run the business. The worker based cooperative benefits workers and the total sales turnover is distributed to the workers. Workers work harder to get more income, less likely to be arguments. Very difficult to start up, end up being sold to limited companies. Difficult to expand the business.Client based Cooperative: A business in which it's aim is to not to make a profit but to benefit clients. Things to remember: A board of directors run the business. The client based cooperative benefits workers and the total sales turnover is distributed to the clients called dividends. Clients are happy to receive dividends and stay loyal. Very difficult to start up, end up being sold to limited companies. Difficult to expand the business.Franchises: A business owned by a franchisee. It is a business that has gained permission to sell good under a franchisors name and make profit. The franchisee makes 49% of the total profit from their business and the rest is given to the franchisor. Things to remember: Franchisor provides training equipment, customers. The company has a low fail rate. The franchisor gets 51% percent of profit, the franchisee can't sell new products and has to follow what the franchisor says. They have no freedom.