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CH 21 Getting Started in Business (Part 1) - Coggle Diagram
CH 21 Getting Started in Business
(Part 1)
Sole trader
Advantages
Easy to set up
Keep all the profits
Decision-making
Confidentiality
Disadvantages
Unlimited Liability
No Continuity of Existence
Stress
Lack of Capital
Partnership
Advantages
Easy to Set up
Decision-making
Increased Capital
Confidentiality
Disadvantages
Unlimited Liability
Profits
Decision-making
Legal Entity
Private Limited Company (Ltd)
Advantages
Limited Liability
Continuity of Existence
Separate Legal Entity
Taxation
Disadvantages
Expensive toSet up
Profits are Shared
Less Confidentiality
Time
Co-operative
Advantages
Limited Liability
Taxation
Continuity of Existence
Democratic Decision-making
Disadvantages
Lack of Capital
Registration
Profits
Confidentiality
Business Location (Factors)
Employees
Infrastructure
Market
Land
Local Environment
Raw Materials
Government
Sources of Finance
Short-term (0-1)
Medium-term (1-5)
Long-term ( 5+)
Production Methods
Job Production
Batch Production
Mass (Flow) Production
Implications for Changing Production Methods
Investment
Finance
Ownership Structure
Changes to Stock Control
Marketing Plan
Subcontracting/Outsourcing
Advantages
Cost Savings
Staff Savings
Meet Demand
Less Bureaucracy
Disadvantages
Loss of Control
Industrial Relations
Competition