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Business - Coggle Diagram
Business
Sole Trader
Advantadges
You are your own boss so you get to decide the hours you work and make all the decisions
You keep all the profit and don't share it among others
You get to do something you thoroughly enjoy
Disadvantages
Unlimited liability - liable for all the business debts
Long working hours and problems with taking sick or holidays as you are the only boss
Have to know all aspects of the business
Banks tend not to lend a loan to small businesses
Characteristics
Partnership
Disadvantages
Unlimited liability
Arguments and disagreements happen more as decisions need to go through all the partners
If one partner acts out then the whole business gets the reputation of a bad business
Advantages
More finances for the business can be raised because more partners can buy into the business
Workload and responsibilities can be shared equally so there is less stress
Partners have the opportunity to specialise in their area of expertise
Characteristics
2-20 partners can own the business
A deed of partners need to be drawn up containing all legal documentations
Tends to be in business such as solicitors and accountants
Public Limited Company
Private Limited Company
Franchise