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All types of businesses, advantages, disadvantages, Real world example,…
All types of businesses
Sole traders
Legal entity
For-profit
advantages
manager keeps all profits
Being your own boss
disadvantages
Manager liable to all debts
Sole responsibility
Real world example
Tradespeople (Electricians, plumbers, etc)
Partnerships
Privately held companies
advantages
no need to provide any information of the company to the public
aren't required to file disclosure statements with the Securities and Exchange Commission
separate-legal entity
for-profit
disadvantages
Limited Stock Exchange Access
personal financial liability
real world example:
IKEA or Lego
Publicly held companies
for-profit
separate legal entity
disadvantages
Risk of producing inefficient products
expensive to maintain and operate
advantages
raising capital
you can trade/buy a stock
real world example:
microsoft
Private sector comapnies
For-profit
Seperate-legal Entity
advantages
employment opportunities
develop's industries
disadvantages
harder to control/motivate workers
real world example
Apple or Amazon
high set-up costs
Public sector companies
For-profit
Separate-legal entity
advantages
Protection from liabilities and debt
Growth and expansion opportunities
disadvantages
Less control over company
More expectations to meet
Real world exmaple
regional development agencies
Cooperatives
For-profit
Seperate-legal Entity
2 advantages
Can rely on business partner
Costs split between more than one person
2 disadvantages
Less operational control
Differences between managers
Real world example
French Groupe: Crédit Agricole
Non-Governmental Organizations (NGOs)
non-profit
separate legal entity
real world example:
united nations
advantages
develop integrated projects
experiment freely
disadvantages
lack of funding
lasting effects can be minimal
advantages
More capital is available for the business
Business is easy to establish and start-up costs are low
disadvantages
Conflict and disagreements
Unlimited liabilities
Real world example
GoPro & Red Bull
for-profit
separate legal entity
