tyoes of ownership

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Types of ownership BusinessDefinitionAdvantagesDisadvantagesSole TraderOne person owns and runs the business.Decisions are made quickerProfits do not have to be shared.Business affairs can be kept as a secret.Finances can’t be easily to raiseUnlimited liabilityIllness/holidays can effect the businessPartnershipA business owned by 2-20 people.Can be formed easilyBusiness affairs are privateNew skills and ideas can be introducedPartnership have unlimited liabilityDisputes can
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take place between the partners.Expansion is difficult.FranchiseA business where the new comer buys permission or to copy the business ideas of the established company.Greater chance of success.Benefits from using the brand name.The franchiser provides support.Have to share the profits to the franchiser.Expensive to set up.Will not be able to sell the businessCo-operativeA business where the workers own the businessMembers are able to set their own terms and conditionsEvery member is a shareholder and is committed to the business.Members may disagreeNot everyone may have the same commitment to the business.The comity that controls the co-operative may lack business skills.BusinessDefinitionAdvantagesDisadvantagesPrivate Limited Company ...

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The presentation of the report is quite poor. I would personally advise creating a number of sub-headings and explaining the definition, advantages and disadvantages in three different paragraphs. This allows the student to explain in more detail, as currently this method doesn't allow the examiner to read in-depth understanding.

Though-out the report, the student hasn't given any justification to there understanding. For example the student could state 'Finances aren't raised easily, as there is only one person, and this is an issue. The capital the person can input may be small and additional funds (such as bank loans) may be difficult to acquire due to the bank may not have confidence within the business at this stage'. In addition, the last paragraph regrading the reason to choosing an Sole Trader option is quite weak. The report should state that the person isn't going to generate large profits, thus an sole trader would be the most effective business set-up.

In summary, the report is quite poor. The report lists the definition, advantages and disadvantages within a table of the different business set-up's. However the table doesn't give much in-depth understanding and this is shown within the report. A 'Sole Trader' is owned by one person, however the business can be managed by a number of people. The student states that only one person manges the business, and this is in-correct. The above would needed to be implemented to gain high marks.