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BUSINESS ORGANISATIONS - Coggle Diagram

- - - - Sole trader business propietors can handle their businesses however they like to, without having to converse with other people before making decisions. Sole trader propietors have more freedom as they can determine their own work hours, holidays, etcetera. Moreover, they do not have to share profits with anyone else after paying taxes and only have to share information about their business with the Tax Office. They can also have a closer relationship with their customers.
    - - As they are the only propietors of their businesses, sole trader propietors have no one to discuss business matters with. T Banks are often unwilling to lend considerable amounts of money to sole trader businesses.
        
        These businesses are unlikely to grow as the capital of expansion is so limited and will unlikely offer big opportunities for its workers.
      - They do not have the benefit of limited liability, as their business is not a separate legal unit, and are more susceptible to debts and such.
      - The money that can be used for their business is restricted to the business's profits, their own savings, and small bank loans.
- - - - Expansion for a business is possible as the capital of all the owners is invested in it. The duties of the business are shared, and the absence of one of the owners is not as heavy of a deal as it is for a sole trader business. Successes and losses are experienced in group, and the owners are pushed to work harder because they would all benefit from the profits.
      - DISADVANTAGES OF PARTNERSHIPS
        
        Partnerships do not have any limited liability.
        
        If one of the business partners were to die, then the partnership would come to a stop.
        
        Partners' opinions can differ and coming to a decision in a group could take a long time.
        
        The shortcomings and failings of one of the partners could result in loss for the rest.
        
        Since most countries limit the amount of business partners to twenty, then the business's growth is dictated by how much capital can be invested by twenty people.