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BUSINESS ENTERPRISES AND ENTREPRENEURSHIP - Coggle Diagram
BUSINESS ENTERPRISES AND ENTREPRENEURSHIP
Business entreprises
Sole trader;
one owner, full control, simple setup
Advantages: keep all the profits; easy decisions
Disadvantages: Unlimited liability, Limited specialisation
Partnership
2-20 partners; shared work, More capital
More skills and shared work.
shared profits. can create conflicts.
Limited company
Sharedholders with limited liablity
Raise finance; Limited risk
Expensive setup and multiple shareholders
2 types of LC
Private Limited Company
Public Limited Company
Franchising
Franchisee: uses brand and pays royalty
Less controll, less earnings due to fees
Training; known brand
Cooperative
Member owned, equality, community
Fair profits, Equal power
Slow making decisions; diofifcult to recruit top managers due to lack of power and lower salaries
Emerging business
Start-ups
Innovative ideas; rapid growth; investor funding.
Crowdfunding
Business growth:
Internal growth: new products, more customers,
Horizontal integration
Vertical Integration
Conglomerate integration
Multinazional companies:
Operate in many countries; central headquartes: joint ventures
Local firms suffer, pollution, profits leave the country.
Jobs created, Higher GDP, better skills