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290541
U2-1 Legal Structure
Descrição
GCSE Business Studies (Unit 2 (Growing a business)) Mapa Mental sobre U2-1 Legal Structure, criado por jadepalmer98 em 20-10-2013.
Sem etiquetas
business studies
unit 2 (growing a business)
business studies
unit 2 (growing a business)
gcse
Mapa Mental por
jadepalmer98
, atualizado more than 1 year ago
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Criado por
jadepalmer98
quase 11 anos atrás
61
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0
Resumo de Recurso
U2-1 Legal Structure
Sole Trader
1 person owns and has full liability of the business
Advantages
Can make all the decisions
Can keep all the profit
Choose own hours
Easy to set up
Disadvantages
No-one to share ideas with
All worry and risk for self
Unlimited liability
Hard to take holidays/ sick leave
Limited ideas
Partnership
2-20 owners take responsibility
Advantages
Share decisions and more ideas
Shared risks
Wider skill sets
Salesperson, accountant etc
Able to take leave and holidays
More finance available
Disadvantages
Share profits
Arguments over decisions
If a partner leaves, partnership disbanded
Deed of partnership
Anotações:
Voluntary document, states working hours, responsibility, profit share etc
Private Limited Company (LTD)
Can sell shares, but only to friends & family
Advantages
Sell shares - more capital
Owners have more loyalty
Limited liability
Disadvantages
Raise less capital than a PLC
Shareholders mean you risk losing full control over the direction of the business
Strong possibility of arguments within family
Shareholders want profit on their investments
Public Limited Company
Advantages
Can sell shares to public
Raise a lot of capital
Limited liability
Disadvantages
May be taken over by a shareholder
Shareholders might want short-term returns
Expensive to set up
Franchise
Advantages
Tried and tested brand
Set up using well-known existing brand name
Disadvantages
Royalties paid to the franchisor
Make few decisions for the business
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