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Business Studies Transition Work - Coggle Diagram
Business Studies Transition Work
Partnerships
Disadvantages
- profits are split between partners, business related decisions have to be agreed on,
Advantages
- shared workload, several points of views, shared expenses, easy to get started, business privacy
Examples
- Airbnb, Apple
Sole Traders
Disadvantages
- unlimited liability, lack of several viewpoints, financial barriers, potentially higher taxes
Advantages
- be your own boss, retain all of profits, easy to set up, can have more simplified taxes
Examples
- Clasper painting and decorating,
LTD
Disadvantages
- control is limited based on number of shareholders, business records must be kept public, expansive to run and set up
Advantages
- limited liability, separate personal and business identity, LOwer taxes compared to sole traders
Examples
- Google, Tesla
PLC
Disadvantages
- high set up cost, limited control over company due to shareholders, PLC's must disclose details on financial performance, lots of legal requirements
Advantages
- can raise money through the sale of equity, PLC's have limited liability
Examples
- Sainsburys, Rolls Royce
Non Profit Organisations
Disadvantages
- lower/ limited funds, tax exemption is not a given, costs can be very high as profits should be going elsewhere
Advantages
- limited liability, being exempt from tax in certain instances, government grants, support from public
Examples
- Greenpeace, The British Red Cross