• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

business ownership & economies of scale

Extracts from this document...


I am going to do some research into the types of ownership and the advantages and disadvantages to each. Sole trader The advantages of being a sole trader are: * It's easy to set up * Sole traders can make decisions quickly * All the profit can be kept The disadvantages to being a sole trader are: * Sole traders have a unlimited liability which means they can lose their personal possessions to pay off any debts the business might have run up * Sole traders do not have the advantages of economies of scale that a large business has * Small businesses are seen as more of a risk by financial institutions, so it can sometimes be difficult to raise money to help start up a business or exp[and later on Partnership The advantages ...read more.


The disadvantages of being a private limited company are: * The accounts of the company cannot be kept private * It is more difficult and more expansive to set up a limited company * The limited company cannot sell there shares on the stock market Public limited company The advantages of a public limited company are: * Share holders have limited liability * Its easy to raise capital by issuing more shares * Its much easy to raise capital as bank are more will to lend money to large more established companies as there is less risk The disadvantages to a public limited company are: * Setting up a public limited company can be expansive. There is a lot administrative work involved and act least �50,000 has to be raised befor it can be set up * Public limited companies have to issue a lot more information about itself which is very expansive to produce. ...read more.


every day which can lead to low job satisfaction, poor quality products, a problem with one group of workers may halt production in the hole business and workers can also become over-specialized which could make it difficult finding enough job if their skills are no longer needed, occupational immobility may result. Economies of scale An economy of scale is the reduction in average costs that comes from producing on a large scale. Purchasing economies is when large firms buys in bulk so gets it cheaper then smaller companies. Marketing economies is when a larger companies pay less per a unit on advertising its products because it want to advertise in a lot of the advertising company's products which means they will end up paying less than a smaller company would. ?? ?? ?? ?? Chloe Morgan ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. Size, Scale, Purpose and Ownership

    Some even sell clothes and bags. It also offers financial services such as its own credit card, personal loans and various types of insurance, in addition to providing a home delivery service for its online shoppers. OWNERSHIP It has shares in the business because many go to work everyday.

  2. English for business

    � Do you think that national advertising is the right way to launch our products? 3. Agreeing and disagreeing � I totally / agree with you / accept fully. � I'm in total agreement. � I'm in favour of that. � Up to a point. � To a certain extend.

  1. Business Studies

    expense of smaller businesses Sugging: > Unethical marketing practise - selling under the guise of research Higher costs: > Often argues that the consumer incurs the costs of the businesses marketing in the form of higher prices * Role of consumer laws in dealing with - Deceptive and misleading advertising

  2. Business studies - Business Plan

    I am near a taxi stand so it's an area where people are picked up and dropped off, it is also an area where lots so school children walk to school and again back home in the afternoon. I will have them as customers as they may be looking for an after school snack or lunch.

  1. Business Ownership

    The franchisee will also find it easier to raise money from banks as they are taking less of a risk with a franchise operation that with an untested small business. Most of the profits made from the business is retained by the owner.

  2. Business Plan. After putting a lot of thought into what kind of business we ...

    my partner as both of us specialize in a different area of the business. My partner would deal with the accounts and advertising side of the business whilst I could specialize in the day to day running of the business such as opening up in the morning and closing up

  1. Organisational Structures and Job Roles at Richer Sounds.

    * In the sixth year of service all colleagues are entitled to an extra days holiday * They also pay sick pay which is not legal entitlement o The company would also help financially if the colleague have been absent from work for a long period of time which would grant from their helping hand fund.

  2. Business Studies- Unit 1- Business Ownership

    Profit capital is also shared between the partnership, meaning that the more partners involved, the less salary they will earn. Another disadvantage is that any arrangements or decisions based on the business are legally binding to all partners. Finally, a partnership is terminated if one single partner dies which means

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work