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type of business organizations - Coggle Diagram
type of business organizations
limited companies
incorporated business
separate legal entity
limited liability for shareholders
type
private limited company
public limited company
adventages
shareholders have limited liability
easier to raise finance
business continuity
disadventages
difficult to set up
original owners may lose control
accounts must be published for bublic view
social enterprises
money reinvested for social clause
type
non profit enterprises
charities
business with sosial objectives
adventages
commited employees
bring positive charge to people and communities
disadventages
less competitive due to limited capital
co-operatives
owned and managed by usersemployeers
type
consumer co-operative
producer co-operative
worker co-operative
adventages
democratic structure
fewer conflicts
usually have limited liability
tax relief from government
disadventages
accounts must be publicly accesable
members many lack skills
difficult to raise finance
sole trader
unincorporated business
unlimited liability
adventages
cheap, quick simple to start
owner keeps all profits
full control of business
disadventages
unlimited liability
difficult to raise finance
partnerships
owned by two or more people
unicorporated
unlimited liability
adventages
workload and decision makin is shared
cheap, quick, simple to start
partners keep all profits
disadventages
unlimited liability
difficult to raise finance
disagreements and conflict
franchies
adventages
greater chance of succes
easier to gain bank loans
franchisor provides support and training
buy right to use existing brand/products
disadventages
must pay license fee/presentages of revenue
high intial setup cost
no full control