Please enable JavaScript.

Coggle requires JavaScript to display documents.

Profit Based Organisations :, Definitions: - Coggle Diagram

- - - - Limited sources of finance
      - High risks
      - Workload and stress
      - Limited economies of scale ( Efficiency that a company gets because of its size)
      - Lack of continuity
      - Unlimited liability
  - - - Few Legal formalities
      - Profit-taking ( All the profits that the sole trader earns goes directly to him
      - Be your own boss ( You are the Boss)
      - Personalized service (The sole trader gets to chose how he services to his customers
      - Privacy ( The company is not judged and closely monitored, just the bank and the government)
- - - - Financial Strength
      - Specialization and division of labor
      - Financial privacy
      - Personalized service
      - Cost-effective (when compared to sole traders)
  - - - Unlimited liability
      - Lack of continuity
      - Longer decision making
      - Lack of harmony
- - - - Raising Finance
      - Limited Liability
      - Economies of scale
      - Productivity
      - Tax Benefits (?)
  - - - Communication problems
      - Complexity
      - Disclosure of information
      - Bureaucracy (The decisions, rules, pledges to better control the organization of the company)
      - Loss of Control