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Business Types - Coggle Diagram

- - - - Only one owner so profits all go to one owner
      - Easiest business type to setiup and run
    - - Unlimited Liability - owner is responsible for all business debt
      - If the sole trader takes time off then the business effectively is suspended
- - - - Having more then one owner could bring new ideas and experiences to the table
      - Usually easy to setup
    - - Unlimited Liability - the partners are responsible for the businesses debts
      - More then one owner so could lead to disagreements in the business
- - - - Limited liability - you are not responbile for thebusinesses debts
      - Seen as less risky by investors and banks so should have a easier time getting loans and investment
    - - Much more admin and paperwork then sole traders and partnerships
      - Have to give some information out into the public every year
- - - - Limited Liability means that you are not responsible for the businesses's debts
      - Numerous methods of finance open to you - Loans, retained profit, shares, venture capital etc
    - - Anyone can buy shares in the company so owners might lose control
      - Very hard to set up as a PLC and is usually reserved for businesses that have operated for a while
- - - - Being able to use a successful business brand and benefiting from their customer loyalty and brand promotions
      - Able to be mentored by senior business people that can offer new ideas and advice
    - - Have to pay initial fees and royalties every year to francsior
      - Not allowed to change much as most of the decisions are made by the higher ups