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Legal Structures (For-profit social enterprises (Cooperatives (Retail…

- - - - -Easy to set up.-Owner has complete control.
        -Owner keeps all profit.
        -Able to choose times and patterns of working.
        -Able to establish close personal relationships with staff and costumers.
        -The business can be based on the interests or skills of the owner.
    - - -Unlimited liability.
        -Often faces intese competition from bigger firms.
        -Owner is unable to specialise in areas of the business that are most interesting (responsiblle for all aspects of management).
        -Difficult to raise additional capital.
        -Long hours often necesary to make business pay.-Lack of continuity.
- - - - The government is released from the financial burden of finding taxpayer´money to pay for the project
    - - this type of PPP encourages both private sector founding and some private sector management control of public projects.
    - - Privately managed schemes. The government provides all founding, but the organisation is managed by a private business that uses private sector methods and techniques to control it as efficiently as possible
  - - - -Partners may specialise in different areas of business management.
        -Shared decision-making.
        -Additional capital injected by each partner.
        -Business losses shared between partners.
        -Greater privacy and fewer legal formalities than cororate organisations (companies.
    - - -Unlimited liabilities for all partners (with some exceptions).
        -Profits are shared.
        -No continuity and the partnership will have to be reformed in the event of the death of one of the partners.
        -All partners bound by the decisions of any one of them.
        -Not possible to raise capital from selling shares.
        -A sole trader, taking on partners, will lose independece of decision-making
- - - - DISADVATAGES
        
        Legal formalities involved in establishing the business.
        
        Capital cannot be raised by sale of shares to the general public.
        -Quite difficult for shareholders to sell shares.
        -End-of-year accounts must be sent to Companies House (in UK) - availabe for public inspection there
      - ADVATAGES
        
        -Shareholders have limited liabilities.
        
        Separate legal personalities
        -Continuity in the event of the death of a shareholder.
        -Original owner is still often able to retain control.
        -Able to raise capital from slae of shares to family, friends and employees.
        -Greater status than an unincorporated business.
  - - - ADVANTAGES
        
        -Limited liability.
        -Separate legal identity.
        -Continuity.
        -Ease of buying and selling shares for shareholders.
        -Access to substantial capital sources due to the ability to issue a prospectus to the public and to offer shares for sale.
      - DISADVANTAGES
        
        -Legal formlities in formation.
        -Cost of business consultants and financial advisers when creating a pc.
        -Share prices subject to fluctuation.
        -Legal requirements concerning disclousure of information to shareholders and the public.
        -Risk of takeover due to the availability of the shares on the stock exchange.
        -Directorsinfluenced by short-ter objectives of major investors.
- - - - environmental
        
        to protect the environment and to manage the business in an environmentally sustainable way
      - economic
        
        make profit to reinvest and provide some return to the owners
      - social
        
        to provide jobs or support for local, often disadvantaged, communities
  - - - Cooperative business owned by costumers for their mutual benefit. Private sector, service oriented.
    - - Farmers pool resources for mutual benefit
    - - Workers collectively own the business and make the important decisions
- - - - legally constituted body with no participation or representation of any government which has a specific aim and purpose