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Types Of Business Organisation, -SJ - Coggle Diagram
Types Of Business Organisation
PARTNERSHIP
ADVANTAGES
More capital could now be invested into the business from his/her savings and this would allow expansion of the business.
EXAMPLES
Uber & Spotify, BMW & Louis Vuitton, etc.
DEFINITION
Partnership is a form of business in which two or more people agree to jointly own a business.
DISADVANTAGES
Partners can disagree on business decisions and consulting all partners take time.
SOLE TRADER
ADVANTAGES
There are few legal regulations for him/her to worry about when he/she set up the business.
EXAMPLES
Freelancers, Self-employed tradespeople, etc.
DISADVANTAGES
He/she have no one to discuss business matters as he/she is the sole owner.
DEFINITION
It is a business owned and operated by just one person- the owner is the sole proprietor.
PUBLIC
ADVANTAGES
This form of business organization still offers limited liability to shareholders.
EXAMPLES
J Sainsbury Plc., AstraZeneca Plc., etc.
DEFINITION
DISADVANTAGES
The legal formalities of forming such a company are quite complicated and time consuming.
PRIVATE
ADVANTAGES
The company can raise capital from sale of shares
EXAMPLES
Flipkart, Ola, Zoom Car, etc.
DISADVANTAGES
The company cannot offer it's shares to the general public.
DEFINITION
-SJ