BUSINESS ORGANISATIONS
SOLE TRADERS
PARTNERSHIPS
LIMITED COMPANIES
CO-OPERATIVES
FRANCHISE
it is owned and controlled by one person responsible of his/her own debts and profits and can take decisions quickly; so it's the simplest and most common type of B.O.
because the sole trader is responsible of everything, he/she has got unlimited liability, he can lose personal assets if the B. fails
a sole trader can also operate the business with the help of members of his/her family
examples
CRAFTSMEN
SKILLED WORKMEN like:
-carpenters
-plumbers
-decorators
-electricians
family businesses
-restaurants
-cafés
-hairdressers
-butchers
-greengroceries
it is a business agreement between 2 or 20 people, called partners, to own and run a business together, they contribute to the initial capital and share managing responsibilities such as profits and losses
UNLIMITED
LIMITED
all partners take an active role in the managment of the B. and are liable for the company's debts, they can also lose personal assets if the B. goes bankrupt
some partners only contribute capital and don't take part in the managment of the B. because they are liable only for the amount of money they invested in the beginning
at least one partner must have unlimited liability, so he/she is responsible for the company's debts
called LIMITED/SLEEPING PARTNERS
called GENERAL/UNLIMITED PARTNER
these are business organisations where all members have a vote no matter on how much capital they invest initially. they have limited liability they all run the company and share profits equally
it is formed by shareholders, they are investors who have shares in the company, (the part of profit they recieve is the dividend)
PUBLIC
'Plcs'
PRIVATE
'Ltds'
they are INCORPORATED (inc) companies in the USA
there is a minimum of 2 share/stockholders with no upper limit
the shares arent traded on the stock exchange market unless all shareholders agree
the share capital must not exceed 50.000 (fifty thousands) pounds
and cant be advertised publicly for sale
they are CORPORATED (co.) companies in the USA
there can be only 2 share/stockholders with no maximum number
the shares may be quoted on the stock exchange
the sare capital must be at least 50.000 pounds
and can be sold to the public
franchising was first introduced in the USA in the mid-1800s (eighteen hundreds) and now has become widespread form of business for sole traders as it is difficult to obtain enough capital to expand, and it is made of two subjects
FRANCHISOR
FRANCHISEE
is an already existing large and well-known company with an enstablished market
is a small business that gets the right from the franchisor to use its trade name and make or sell its products in a specific location
it has to pay an initial amount of money, it recieves the shop forniture in the company's style and marketing support from the franchisor
it has to invest relatively little capital in distribuition outlets and keeps a percentage of the franchisee's annual profits
it doesnt invest capital in advertising campaigns, as the business record and reputatrion of the franchisor supports the franchisee, also because of this the risk of failure is reduced