Business ownerships Essay

The different types of crease avowerships arSole trader.When plainly one soul owns the occupancy. They do not sh ar the profits with anyone a resole trader is somebody who controls his/her own concern. Have un especial(a) liability. They end employ people to help them at subject field but they catch sole responsibility of the business.The advantages of be a sole trader argonMake own decisions.Does not reach to sh atomic number 18 profits.Always recognize what is happening in business as they call all the decisions. encounter of business butt endnot be lost.Easier to located up own business.Little hood is needed when setting up a sole trader.Management is simpler. more(prenominal) self esteem when they own their own business.The disadvantages of being a sole trader argonBecause the business has unlimited liability is means that if the business in unsuccessful the sole trader testament have to establish back all the businesses debt.The sole trader deal become hig hly stressed because they are in full control of the business.Not a lot time off, unless someone else takes over.FranchiseWhen big companies are possess by sole trades. The two main sliceies involved are the franchisee and franchisor. The franchisor allows the franchisee to use the businesses name, harvest-time and layout in return for a share of the profits make.The advantages of being a franchise areThe business basin expand.Franchisees make water a notice to blend in the business for a greater chance of success.The disadvantages of being a franchise areIf the franchisee is unsuccessful the business may get a bad reputation.The franchisee cannot make decisions without the franchisors authorisation.The franchisee does not automatically have their bargain renewed.PartnershipA league usually involves betwixt 2-20 people. The profits made has to be shared among all workers. Legal documents such as the form of address of partnership have to be signed before the business c an begin.Advantages of being a partnershipThere is more than one mortal 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.Public limited society (PLC)Is usually a larger business, they employ far more people than a undercover limited company. 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. whole 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 effect of shares.Shareholders may feel isolated because they dont know each other.Workers/ retail Co-operativeA work ers co-operative is owned and run by the whole work force so in that respect will be no arguments between the owners and workers as they are the same 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 do because they know they will determine a share out of the profits.Opinions are heard.Disadvantages of workers co-operativeLong time for decisions to be made.Business may suffer, because there are no specified leaders.Not many people have trustfulness in co-operatives so they are not always well supported. one-on-one limited company (LTD)People w ho own part of a undercover limited company are called shareholders. Family and friends can scarcely 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 selling shares.Competitors.Tower endocarpTower endocarp 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 result in failing to dig 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 branch of the concourse 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.Som e disadvantages 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 bring on uncertainty for the franchisee.This fund may suit Fred because he may become 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.