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Advantages/Disadvantages - Coggle Diagram
Advantages/Disadvantages
sole trader [plumber]
disadvantages
nobody to confer with for decisions
high self employment tax
limited access to finances
Advantages
keep all of the profit they make
no other managers to pay/staff
get to make the decisions without anybody disagreeing
partnerships[louis Vuitton and bmw]
Advantages
able to access to more finances through another person
can confer with another partner about key decisions
shared responsibility for the debt and other finances
Disadvantages
may disagree with partnerships views and decisions
shared profit with partner
unlimited liability for each partner
LTD's [new look]
Advantages
limited liability
low costs for setup
improved reputation
Disadvantages
higher legal fees than a sole proprietorship
more administrative responsibilities
hard to motivate and control workers that are not shareholders
PLC's [easy jet, low cost]
Disadvantages
expensive to step up
all affairs of company are public
may not agree on decisions for the business
Advantages
raise more finance through share capital
shareholders have limited liability
status of the company being increased so banks will allow more loans
public sector [police officer]
Disadvantages
delayed decisions
lack of efficiency
waste of taxpayer funds
Advantages
higher average wages
helping the community whilst serving
less demanding atmosphere