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The Firm and Its Environment - Coggle Diagram
The Firm and Its Environment
Sole Proprietorship
One-owner Business
Advantages
Easy to Organise
Owners Receive All Profits
Decisions can be Made Quickly
Disadvsntages
Limited Resources
To Start
To Operate
Owner and Bisiness are Same
Bisiness
Institution
Nationalised Companies
Private Companies
Just One Owner
Shareholders "Owning" the Firm
Corporation
One or More Investors
Issues Shares of Stock
Board of Directors
Produce a Profit
Sharholders
Divedend
Goes Bankrupt
Lose Only Value of Stock
Selling Bonds
Do not Represent Owner-ship
Unlimited life
Double Taxation
Partnership
Association
Partners
Contribute Equal Capital
Have Authority
Share
Profits
Losses
Partner dies
Bisnesses must be dissalved