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Types of business organisation C4 - Coggle Diagram
Types of business
organisation C4
Forms of business
organisation
Joint venture
Set separate new business
Advantages:
share risks and
research
Two or more
business agree
Disadvantages:
disagreement in
decision
shared profits
Collaboration
Franchise
Franchisor
Advantages:
rapid expansion
franchisee
Disadvantages:
poor management of 1 outlet affect whole business
Affect reputation—> sales and revenue⬇️
Franchisee
Advantages:
provide training
franchisor pay
for advertisements
Disadvantages:
less independent
licensed fee
from franchisor
Entrepreneurs buy right to use
name, logo and product of existing
business/ their brand
Sole Trader
Own by 1 person
Characteristics:
keep all profits
Advantages:
own boss
make all decisions
freedom
Unincorporated business
Disadvantages:
long hours
unlimited liability
can’t continue business
Partnership
Disadvantages:
potential conflict
time used to consult partner
Own by 2 or
more people
Advantages:
share responsibilities
and decisions
Unlimited
liabilities
Public limited
company
Own by
shareholders
Can sell
shares to public
Advantages:
limited liability
raise large capital
Disadvantages:
lose privacy
legal formalities
difficult to manage
Private limited
company
Own by
shareholders
Can’t sell
shares to public
Advantages:
limited liability
sale of shares
separate identity
Disadvantages:
less capital
legal formalities