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Ownership.The majority of businesses are owned by sole proprietors. The owner has complete control of the business, and is completely responsible for the company success or failure.

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Introduction

The majority of businesses are owned by sole proprietors. The owner has complete control of the business, and is completely responsible for the company success or failure. The risks of sole proprietors are highly immense, but the rewards are great in job satisfaction. The main advantages of this form of business are: * Small start up costs. It is simple and very inexpensive to get set up as a sole proprietor. However you will have to tell the income tax authorities and you will be taxed under schedule D. you must also keep proper business accounts. * All profits are kept by the owner of the company, although they must save enough money to be able to pay tax, interest charges on loans and VAT. * Losses made in the first year may be offset, or balanced, against tax paid earlier in the same financial year. * The small business is very flexible, where if one kind of activity is not making any profit the owner can easily and quickly switch to something else. ...read more.

Middle

* Extra capital for the business. * Two people can normally raise more money than one. The main disadvantages are: * Working together can cause disagreement. * Each partner can provide different amount of capital. * Profits may be shared unevenly. * Not sure on who should control the business. The next thing to do in a business is to form a private limited company, (this gives the company the right to add abbreviation Ltd to its name). The share holders own the company and are usually family members of the persons who set up the business. Some of the shares my also be owned by friends, employees and business associates. The main advantages are: * The founders of the business are usually the main shareholders and directors of the firm. * The people who started the business own it and have a say in everything that happens. * If the company was in debt the main shareholders would not have to pay out of their own money. * If they invested �1000 in shares they may lose that but not a penny more. ...read more.

Conclusion

Control of plc's: The majority of shares in practically all companies are owned by institutional investors. Their huge blocks of shares give them great influence over companies, policies and the way in which they are run. The institutions votes at company annual general meetings (AGMs). Franchising is a form of co-operation, often between a big firm and a sole proprietor. The firm has a product known by people with its own name, such as macdonalds and in return for an initial fee and continuing royalty payments, the franchiser allows the franchisee to set up his or her own business and to use the firm's own name. Advantages: Franchisee's have many advantages and have a much greater chance of success than smaller businesses as the product has to be tested and has a secure place in the market. Disadvantages: * Has less independence than other sole proprietors. * Will not be able to sell the business without the franchisers agreement. * Does not always have the right to renew the franchise automatically. * Has to make continually royalty payments to the franchiser. * Sometimes has to pay a mark-up, or percentage of the price, on supplies from the franchiser. ...read more.

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