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The types of business ownership

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Introduction

TO: Mrs. Cowern FROM: James Cadman 10NT DATE: 17th September 2004 TERMS OF REFERENCE: This report is about the advantages and disadvantages of different types of business ownerships. I am going to write about the advantages and disadvantages of different business ownerships including: * Sole Trader * Partnership * Franchise I will include the definitions of some of the business ownerships. SOLE TRADER Sole trader, as the name suggests, is where an individual is the sole owner of a business. The business is often quite small in terms of size (as measured, for example, by sales generated, or number of staff employed) however the number of these businesses is very large indeed. Examples of these businesses can be found in most industrial sectors but particularly in most service sectors. Hence services such as electrical repair, picture framing, photography, diving instruction, retail shops, and hotels have a large proportion of sole trade business Advantages * A sole trade business is easy to set up. ...read more.

Middle

business to examine the implications and consequences of bankruptcy or loss of personal possessions due to the individual accepting unlimited liability must also be considered. The larger your business becomes the great risk will be undertaking in operating as a sole trader. PARTNERSHPS A partnership is a relationship existing between two or more persons who join together to carry on a trade or business. Each partner contributes money, property, labour, or skill to the partnership and in return, expects to share in the profits or losses of the business. A partnership is usually based on a partnership agreement of some type, although the agreement need not be a formal document. It may even simply be an oral understanding between the partners, although this is not recommended. ADVANTAGES * Having partners can be less stressful than being a sole trader. Partners are available to cover for holidays and during periods of illness. * Partnerships normally find it easier to raise capital than sole traders do. ...read more.

Conclusion

as the British school of motoring already have an established name so less advertising is needed * Franchisors often provide initial training and advice DISADVANTAGES * A franchisee is not really his or her own boss they are under control of the franchisor * If some franchises run their branch badly then they may all suffer as a result. In conclusion I think the best business that I have analysed I think the partnership business is the best for financial gain. I think the sole trader ownership is the best for being your own boss and is the easiest to set up. The franchise is the best for having a good image and has the added security that the business is going to be a success unlike starting a new idea which can be risky and may fail .The overall best business that I have studied in my opinion is the franchise less advertising is needed and is the safest to set up. ?? ?? ?? ?? Business studies double award James Cadman 10NT KCN 2004 ...read more.

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