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2523327
Legal ownership
Descripción
Legal ownership mind map
Mapa Mental por
James_Daws
, actualizado hace más de 1 año
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Creado por
James_Daws
hace alrededor de 9 años
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Resumen del Recurso
Legal ownership
Sole Trader
Advantages
No need to pay wages to employees if you work on your own
All income goes to the manager
Easy to set up
Disadvantages
You need good business skills
Illness or holidays would mean no income
You are responsible for paying all debts, otherwise you could go bankrupt
Example: Tony Daws soccer school
Partnership
Advantages
Partners can share skills and ideas
The business will still operate if one partner is ill or away
Problems can be discussed and other views taken into account
Disadvantages
Profits must be shared
Decision making is slower
Partners may disagree or not contribute equally
Example: Intel
Private limited company
Advantages
Banks are more willing to lend money
The owners have limited liability
Disadvantages
Shares in a private limited company can not be sold to the public
Limited companies must comply with more laws and send their accounts to companies house each year
Example: Specsavers
Public Limited company
Advantages
The company receives far more capital which can be used to grow the company
Some of the profit, after tax, can be paid to the shareholders as dividends
Disadvantages
If the shares fall in value, many shareholders may sell which lowers the value of the company
An annual general meeting must be held each year and all shareholders are invited
Example: Microsoft
Franchise
Advantages
Relationships with suppliers have already been established
You can used a recognised brand name and benefit from any advertising that the franchisor makes
Disadvantages
All profits are usually shared with the franchisor
The franchisor might go out of business
Example: McDonald's
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