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Ownerships of a Business

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Introduction

1.1 Public Limited Company A public limited company's are usually a famous brand. For example JD sports and there income everyday is shown in most tabloids and business papers. A 'PLC' must have more than �50,000 paid up share capital before the business can be started. The advantages of a Public Limited Company are that * You a can get profit by selling shares to the public * The company will be big so it will be easier to negotiate with suppliers * Other share holders have limited liability * You can employ specialised people for the job * Deaths or illnesses do not effect the company * It can be easier to borrow money But there are also disadvantages. Because there can be a huge amount of changes to the company like * There can be a big investment into the business and can take over * Everybody's account is not private * It is very expensive to set up * Unlimited liability (except sleeping partners) ...read more.

Middle

The benefits of having a franchise are: * If you are an owner of a franchise of a business you would retain most of the profit. * Only a small percentage of these types of ownerships do not work. The owner of the franchise can set out how much money he wants to put into the business. Disadvantages: * The franchisee does not n have power to run that ordinary business would have because of the franchise agreement. * The franchisee cannot sell the business without the franchisor's permission. 1.4 Sole Trader A sole trader is someone who runs and works there own business. As a sole trader you can. Setting up as a sole trader is a good plan if your business is low risk and your overheads are relatively low. This is the simplest form of business organisation. One individual starts trading and has then formed a sole proprietorship. The owner provides all the capital and undertakes all the risks. ...read more.

Conclusion

You can have something called a deed of partnership which is, legally binding agreement between the partners who are in business together. It describes how the partnership will be run and the rights and duties of the partners themselves2. And also has information of how much money a partner has put money into the business, who the partners are, how the profit should be shared out, the producers of a partner joining or leaving the business and also how many votes one person has in meetings. They also have unlimited liability (except sleeping partners), for example a partnership business could be a estate agents or a accountants etc. Advantages * Easy to set up. * Usually small so less money is needed to set up. * Responsibilities can be shared around partners. * Decisions can be shared. * Can be run as a family business. * Money comes from partners. Disadvantages * Unlimited liability. * Legal costs of making a deed of partnership. * Arguments within the group. * Limited amount of partners. * More money may have to be pt in if a partner leaves. 1 http://www.google.co.uk/search?hl=en&q=define%3A+franchise&meta= 2http://www.businesslink.gov.uk/bdotg/action/detail?r.l3=1073864308&r.l2=1073859131&r.l1=1073858805&r.s=sc&type=RESOURCES&itemId=1073789512 ?? ?? ?? ?? ...read more.

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