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BUSINESS ECONOMICS - Coggle Diagram
BUSINESS ECONOMICS
Limited Companies
Are structure that has a legal exstence separate from it's initial investor
The Shareholders
can be
Pubblic
Private
advantages
Limited liability
Separate legal identity
Easier to raise capital
Professional management
Continuity
disadvantages
Complex to set up
Profit sharing
Less control for shareholders
Higher costs
Regulations
Sole Trade
is the most common type of business
are selfs-employed people who own run and are legally responsible for all aspects
advantages
Full control
Keeps all profits
Simple to start and run
Quick decisions
disadvantages
Unlimited liability
High risk
Limited capital
Heavy workload
Partnership
ia an agreement between parties
two types of partner
Unlimited or Ordinary partnership
Limited Partnership
The Advantages and Disadvantages
Advantages
Fewer legal obligations
Better decision-making
Ownership and control are shared
more partners
Didadvantages
Has no indipendent legal existence district
Unlimited liability for at least one partners
Slower and more difficult decision making
Profits must be shared
May be potential conflicts among the partner
Franchising
Can be a method distributing products or services
Is an agrangement involves two people
Franchisor
Franchisee