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Choosing the right type of ownership - Coggle Diagram
Choosing the right type of ownership
Risk
smaller business = more risk
sole traders have to cope with
unlimited liability
they are solely liable for the business's debts
lack of expertise
owners of larger companies have more expertise available
they can employ specialist directors
they are less likely to make poor decisions
they are protected by limited liability
Control
more owners a business has =
less control each individual has
more access to finance
the business raises more money through selling shares to the public
but the original owners lose some control of the business
Ambition
some entrepreneurs start their business for the satisfacction and enjoymento of running a business
not just for financial gain
some business chose to stay small so the entrepreneur has the control