Sole trader- these are businesses owned by a single person, like a window cleaner or a corner shop. The advantages of this type of business is that the person gets to keep all the profit, they also get to make all the decisions as well as be there own boss. Another advantage is that it is one of the easiest businesses to set-up. The disadvantages include the fact that it's harder to take a break and all responsibility lies on you. They will also have unlimited liability which means that they will have to pay for all losses.
And working for you self means that you have to work as hard as possible in order to make a good amount of profit. Partnership businesses will consist of 2-20 people; examples of these are doctors, solicitors and dentists. The advantages of this type of business is that the burden of the company is split so less tension. If there is more people there it is more specialisation as the different people are differently skilled so this means as there is multi skill within the business more work can be produced in different areas.
In this sort of business it is easier to take holidays as the company can still operate. Disadvantages of this is that there is once again a unlimited liability this means if 1 of the owners were to leave then the other owners must sign another deed of partnership; this is a contract outlining the deeds set out for each individual this maybe how much each individual has to put in or maybe how much percentage they will own and other important details.
Another problem is that the partners will tend to complain as one may not produce enough work, another thing is that its harder to make decisions as others have to be consulted and it takes longer for everyone to agree. > Private limited company is nearly the same as the public limited company the only difference are that the shares are not sold on a stock market but people are invited to buy shares, which reduces that number of people who can control the company. There must be at least two shareholders, share will be brought with permission of the board of directors.
The advantages of this sort of business is that it is easier to raise capital by selling shares and there is a protection of limited liability for each share holder. The disadvantages will be all profit must be shared between the shareholders and this sort of business will prove expensive to set up and run. > > Not for profit- these are basically charities, these are here to fill gaps in services, or to change the environment we live in. making profit is a secondary aim for these companies > Franchises are like hiring out. Or buying a store of a company is like saying your buying one of there franchises.
The advantages of this are that the company it self gets to expand, for less of there own invest meant which means less risk this is because the person buying the franchise has to put more money in than the actual company it self. > 3Proof of ownership of J. Sainsbury's Other types of ownerships are: Sole trader- this type of business is owned by a single person, an example is a cornershop. The owner is able to keep the profit. The advantage is that it is easy to set up, and it is also easy to run because you make all the decision.
The disadvantages are that all responsibility lies on you and it's hard to take a break. Also in events of sickness, there is no one to take over. Partnership- consists of 2-20 people and a sleeping partner. People in business partnerships can share skills and the workload, and it may be easier to raise the needed capital. Examples of a partnership are doctors, solicitors and dentists. Profit is distributed by sharing between the partners. The advantages are that you can share ideas, each person is specialised which makes it easier to raise finance, each person contributes.
Disadvantages are that you have to draw up a deed of part, this costs money and also profits and losses are shared. Private limited company- this is similar to public limited company except the shares are not sold on a stock market, shares are only sold to family and friends. The advantages are that it is easy to raise finance. The disadvantages are that the ownership is shared, profits are shared. A legal document is also needed (memorandum and articles) and it is more expensive. The profit is distributed by shareholders receiving a dividend and then managing director(s) decide how much dividend is received.
Franchise – are like hiring out. Or buying a store of a company is like saying your buying one of their franchises. The advantages are that it is already a well established business and advertising is done for you. Also the company it self gets to expand, for less of their own investment which means less risk; this is because the person buying the franchise has to put more money in than the actual company it self. Profit is distributed by franchisee keeping the profits after paying royality to franchisor.