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business - Coggle Diagram
business
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business ownership
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limited liability
only business assets are used to pay business' dets -share holders assest are safe if the business fails
sole trader
featuers
- one owner
- can have empolyes
advantages
- quick and easy decision makeing
- easy to set up
- owner keep all the profit
- tatal financial privicy
negatives
- unlimited liablity
- hard to raise capital
- pressure- owner takes all the risk
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partnership
faetures
- 2 or more owners
- set up with a deed of partnership
- can be limited or unlimited liabilty
advantages
-easier to rasie capital
- more ideas/expertise
- shared rise/decisions
- fincal privicy
disadvantages
- usally unlimited liablilty
- there will be disagreements
- profit is shared
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franchising
an exsisting businesss (franchisor) sells the rights for another business (franshisee) to use their business modle in return for a share of the profit.
franchisor
advantages
- quicker way od growing the business
- revenune from roalty payment
disadvantages
- need good system to suport franchies
- potential damage to the brand if the franchies are poor quality
franchisee
adavantages
- less risky than being indaoendant
- better than a new brand
- gets training and and support
disadvantages
- less independance control
- has to share the profit