Business ownerships Essay

The different types of worry witnesserships be touch on monger.When only one person owns the business. They do not office the profits with anyone a repair trader is somebody who retards his/her own business. Have un control liability. They butt end employ people to help them at pretend but they go through doctor responsibility of the business.The advantages of beingness a sole trader be possess own decisions.Does not guard to administer profits.Always know what is happening in business as they make totally the decisions.Control of business fuckingnot be lost.Easier to set up own business.Little bully is learned when setting up a sole trader.Management is simpler.More self esteem when they own their own business.The disadvantages of being a sole trader arBecause the business has un destineed liability is fashion that if the business in unsuccessful the sole trader will have to pay back all the businesses debt.The sole trader can become extremely stressed because t hey are in full control of the business.Not much time off, unless someone else take holds over.FranchiseWhen big companies are owned by sole trades. The two main parties involved are the franchisee and franchisor. The franchisor allows the franchisee to use the businesses name, product and layout in return for a share of the profits made.The advantages of being a franchise areThe business can expand.Franchisees attain a chance to run the business for a greater chance of success.The disadvantages of being a franchise areIf the franchisee is unsuccessful the business whitethorn get a bad reputation.The franchisee cannot make decisions without the franchisors authorisation.The franchisee does not automatically have their agreement renewed.PartnershipA partnership usually involves between 2-20 people. The profits made has to be divided among all featers. Legal documents such as the Deed of partnership have to be signed in the lead the business can begin.Advantages of being a partn ershipThere is more than one person in charge.Ideas can always be shared.Everyone can be part in the area they are most strongest in.Disadvantages of being a partnershipArguments may occur.Partners have unlimited liability so they will be less willing to invest.The legal documents have to be completed, and this process may take a while. mankind limited smart set (PLC)Is usually a larger business, they employ far more people than a private limited alliance. Shares can be bought and sold by members of the public on the stock market. The prices of shares vary.Advantages of being a public limited companyPLC can raise capital easily.All shareholders have limited liability.Disadvantages of being a public limited companyBecause shareholders of a PLC are members of the public, control of the business can be lost is someone buys a great number of shares.Shareholders may feel isolated because they come int know each other. break downers/ retail Co-operativeA workers co-operative is owned a nd run by the whole work force so there will be no arguments between the owners and workers as they are the resembling people. People who own part of workers co-operative are called members. Membership of workers co-operative tries to ensure that everyone has a say in how the business is run. All members are in control of the business.Retail co-operative shares its profits amongst its members. People who own a share of the retail co-operative is called a member. The first retail co-operative was set up in Rochdale in 1844.Advantages of workers co-operativeNo arguments.Happier environment.Work harder.More motivated because they know they will set about a share out of the profits.Opinions are heard.Disadvantages of workers co-operative foresighted time for decisions to be made.Business may suffer, because there are no specified leaders.Not many a(prenominal) people have faith in co-operatives so they are not always well supported. individual(a) limited company (LTD)People who own p art of a private limited company are called shareholders. Family and friends can only buy shares for a private limited company.Advantages of a Private limited companyFamily & friends can only buy shares.Capital can be raised because there is no limit on the number of shareholders.Disadvantages of a Private limited companyShareholders may argue or disagree.Restrictions for interchange shares.Competitors.Tower orchestra pitTower Colliery is a Worker co-operative this means that the business is owned by all of its workers. There isnt one main person in workers co-operative because they all own it.It is a limited liability business as it is a worker co-operative, as it is the work forces problem if the company is in debt. Tower colliery has a legal status.Tower Colliery suits their workers co-operative as all the workers get an opinion on how the business is run and also they get a share of the profits.Tower colliery is a medium sized business.Some of the advantages of being a worker co-operative areHappy workers because views and opinions are heard.More motivated because they know they will receive a share of profits.Work harder because it is owned by the workface.No arguments because they are on the same level.Some of the disadvantages of being a worker co-operativeDecisions will take longer to make them.May suffer because there are no specified leader which could solution in failing to reach aims.Support few people have faith in co-operatives so they are not always well supported.SparSpar is a Franchise ownership as it is owned by a family. The only one person that owns spar is the franchisee because they have brought a limb of the group that own Spar. It has limited liability.It has legal status.Some advantages of being a franchise areBecause they have so many shops around there is more profit being made.The business can expand.Franchisees get the chance to run business that has a greater chance of success than for example, a sole trader does.Some disadvan tages of being a franchise areIf the franchisee is unsuccessful the business may receive a bad reputation.The franchisee cannot make any decisions without getting permission off the franchisor.The franchisee does not automatically have their agreement renewed the agreement has to be renewed regularly. This may create uncertainty for the franchisee.This store may suit Fred because he may live closely to this branch and it sells everyday products that he may need so he doesnt have to go to a larger store which is further away.