The Types of Business Ownership
This report is about the advantages and disadvantages
of different types of
business ownerships.
Introduction
I am going to write about the advantages and disadvantages of
different business ownerships including:
* Sole Trader
* Partnership
* Franchise
I will include the definitions of some of the business ownerships.
Main Body
SOLE TRADER
Sole trader, as the name suggests, is where an individual is the sole
owner of a business. The business is often quite small in terms of
size (as measured, for example, by sales generated, or number of staff
employed) however the number of these businesses is very large indeed.
Examples of these businesses can be found in most industrial sectors
but particularly in most service sectors. Hence services such as
electrical repair, picture framing, photography, diving instruction,
retail shops, and hotels have a large proportion of sole trade
business
Advantages
* A sole trade business is easy to set up. No formal procedures are
required and operations can often commence immediately (unless special
permission is required because of the nature of the trade or service,
such as running licensed premises).
* The owner of a sole trader business can decide the way in which the
business is to be conducted and has the flexibility to restructure or
dissolve the business whenever it suits. The law does not recognise
the sole trader as being separate from the owner and so the business
will cease on the death of the owner.
* Other advantages include having complete control over the business
and its profits; you are...
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* Franchisors often provide initial training and advice
DISADVANTAGES
* A franchisee is not really his or her own boss they are under
control of the franchisor
* If some franchises run their branch badly then they may all suffer
as a result.
Evaluation
In conclusion I think the best business that I have analysed I think
the partnership business is the best for financial gain. I think the
sole trader ownership is the best for being your own boss and is the
easiest to set up.
The franchise is the best for having a good image and has the added
security that the business is going to be a success unlike starting a
new idea which can be risky and may fail .The overall best business
that I have studied in my opinion is the franchise less advertising is
needed and is the safest to set up.
ii) If one is the owner or operator, liability may attach even if some other
...responsibility of generating profit and maximizing it, but then it should take into account the principle elements that are very crucial to its survival - stakeholders. For instance, if customers stopped buying product or investor withdrew their investment because of a greedy pursuit of profit. The future of an entire business collapses. In addition to this, maximizing the profit by just binding to the rules of the game is not enough since the rules of the game are not always fair, thus primary and secondary stakeholders should be considered while making money.
Who is the decision maker in this case, and what is their position and responsibilities?
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A Sole Trader is a business that is owned by only 1 person. They are
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