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Business entities - Coggle Diagram
Business entities
Sole trader by Milo
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Unlimited liability which means the owner is tied to the business so any debts has to be paid off by the owner
Easy to start a sole trader business as it often doesn't cost much to start and has low barriers to entry
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The owner is taxed as an individual as they are a part of the company / business. This means if the business goes bust then the money to pay off debts is going to have to come out of the owners pocket this also means any tax or bills gets paid out of the owners pocket.
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Franchises by Mohammed
7-Eleven is the leading franchising company by number of locations boasting 80,000 shops worldwide in 20 countries and territories.
Taking on a franchise can prove to advantageous as the marketing and the brand is already done for you.
Statistically franchises have a higher success rate as opposed to independent business because they operate on a business concept that is already successful in the market.
Being a franchisor can be advantageous because it allows your company to grow much faster geographically this is because the franchisees provide the capital for these new outlets.