Business Chart

continuityhigh cost of productionPartnershipowned by two or more peopledeed of partnershipresponsibility are shared equallyowned by two to twenty people to share responsibilityburden of running companyMore financial strength than sole proprietorships as there are more people who can invest Benefits from division of labor and specialization Don’t have to publicize financial records so they have privacy Additional capital injected by each otherBusiness losses are shared between partners Shared decision-makingUnlimited liability for all partners Compared to sole traders, decision-making would take longer All partners are bound by decisions made by any one of the partners No continuity and partnership will have to reform in event of death Public Limited CorporationSomeone can just “buy” the company from you.Offers their shares to the general public.Multiple owners and ownership may easily change.Are in a private sectorShareholders have limited liabilityAllowed to sell shareBoard of directors can vary from number so that they will allow discussion amongst the board of director on how to run the companyDelusion of controlDecisions take longer.Profit is shared by a large body of peoplePublic disclosure of the financial affairs is necessarymust give out financial information to publicPrivate Limited Companymediumcorporation limited by shares (guaranteed by its members who agree to pay)companies are managed by directors and shareholdersshare own by each person reflects the size of the companyshareholders not responsible for the debtsseparate legal entitiesLimited liability i,e, if the company runs into financial problems, and has to be wound up, then you are not personally liable for more than £1 of its debts.More stable than sole proprietorship/ partnership, less liable for bankruptcyA limited company has a legal existence separate from management and its members (the shareholders)Protection for company nameNew shareholders and investors can be easily introducedBetter pension schemeslimited companies are subjected to corporation tax on their profitslimited company directors have more legal final and administrative responsibilitiesinformation concerning the company is made publiccost lost of money to createShareholders in a PLC are not able to sell or transfer their shares to the general publicFranchisingN/ABuy off a company’s logo to sell their products for profitGet permission to sell their brand’s productDon’t need to advertise it outtraining and advertising are provided by the franchiserrestriction and less flexibility in the store/ company not much decision making