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Forms of business ownership - Coggle Diagram
Forms of business ownership
Sole proprietorships
Characteristics
Own by one person
Adv Full control, all revenues
dis; workload
One runs it all
Limited capital & resources
Unlimited liability
Partnership
General partener
Unlimited liabilitiy
Operates the business
Invest in the business
Limited partner
Invest in the business
Does not operates, only contribute money
Limited amount only
Nominal partner
Does not operate, does not invest
Only borrow the good name to the business
Limited company
Owned by multiple (shares)
Private Limited
Shares are not sold in public
1 - 50 shareholders
No disclosure of financial data
Raise limited capital
Public limited
Shares are sold to public
1 to unlimited shareholders
Required to disclose income statement and balance sheet
Raise large capital
Joint venture
Formed by 2 or more business
Share everything*
Franchise
Franchisor sells its brand to franchisee for franchise fee
Difficult to control
Stable income
Lower risk to operate
Public Enterprises
Owned by Government
Provide necessities