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2523338
Legal Ownership
Descrição
By Mitchell
Mapa Mental por
Mitch.Davy
, atualizado more than 1 year ago
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Criado por
Mitch.Davy
mais de 9 anos atrás
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Resumo de Recurso
Legal Ownership
Sole Traders
Disadvantages
Illness or holidays may mean no income
You need business skills
You are personally responsible for paying all debts, otherwise you could be declared bankrupt, this is called unlimited liability
Advantages
Easy to set up, just register with the tax office.
After paying tax, all the profits are yours.
You can trade under your own name without needing permission
Partenerships
Disadvantages
Partners may disagree or not contribute equally
Profit must be shared
Decision making may be slower
Advantages
Partners can share skills and ideas
Problems can be discussed and different views taken into account
The business can still operate if one partner is ill or on holiday
Private Limited Company
Disadvantages
Shares in a private company cannot be sold to the public
Limited companies must comply with more laws and send their accounts to Companies House each year
All directors and company officers have certain legal duties and obligations
Advantages
The owners have limited liability for debts. If the business fails, they are only liable up to the amount they invested in the business.
Banks are more willing to lend money
Public Limited Company
Advantages
Business receives far more capital which can be used to grow the company
If the business is successful, the value of shares will increase, which increases the value of the company
Some of he profit, after tax, can be paid to the shareholders as dividends
Disadvantages
The company must comply with more rules and its accounts are reported in the press
An annual general meeting must be held each year and all the shareholders are invited
If the shares fall in value, many shareholders may sell which lowers the value of the company
Franchise
Advantages
The franchiser gives you support
Relationships with suppliers have already been established
You can use a recognised brand name and trade marks
Disadvantages
Other franchisees may give the company a bad reputation
You may find it difficult to sell your franchise
You might not be able to make changes to suit your local market
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