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business types - Coggle Diagram
business types
sole trader
unlimited liability
you are responsible for any unpaid debts+they can take your personal possessions to make up for any unpaid debts
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advantages: get all the profit, take holidays whenever you like, take time off whenever you like
disadvantages: you have a lot of responsibility, when you take time off you lose profit
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partnership
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advantages:more work going into the business, more business opportunities, emotional support, new perspective
disadvantages
unlimited liability, having to share profit between owners, shared liability, lack of stability
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franchise
a franchise is a business that pays for the rights to work under the name of an already existing business such as KFC, McDonalds, Dominoes, etc.
It is owned by the franchisee, however it is controlled by the franchisor
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advantages
Do not have the effort of having to grow your own business and making their name known, it reduces the risk of failure, ongoing business support, free employee training
disadvantages
limited control of the business, a large fee needed to pay the franchisor, limited creative opportunities,contracts aren't permanent,
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