Ownership and location of Tesco and McDonalds

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Business Ownership.

There are many different types of business ownership. The four main privately owned enterprises are:

Sole traders - owned and run by one person.

Partnerships - owned and run by two or more people.

Private limited companies - often a business run by a family protected by limited liability.

Public limited companies - large organisations whose shares are floated on the stock exchange.

In addition there are two other types:

Co-operatives - where a group of people run the enterprise together and share the profits or loses.

Franchise - where a large organisation allows a person to sell its products and use its name in exchange for a fee and a share of the profits.

All privately owned enterprises are able to be divided into two groups:

Those with unlimited liability - sole traders and partnerships

Those with limited liability - all companies, some franchise and some co-operatives.

Unlimited liability means that the owners are responsible for all the debts. They may even have to sell personal possessions to pay them. If this is not possible then they will declared bankrupt.

Limited liability restricts the responsibility of being responsible for all you debts. You only have to pay the debts to the limit of what was invested. Not usually do they have to sell their personal possessions.

There are many different advantages and disadvantages to all different types of ownership:

Sole traders - owned and run by one individual.

Advantages:

* The owner has full control of the business and all of its profits.

* All profits go to the owner.

* The owner can make decisions independently without the need to consult anybody else.

* Can easily create a report with customer.

* Has the ability to exploit niche market.

* No Set up for procedures.

Disadvantages:

* The owner has unlimited liability.

* The profits get ploughed back into the business.

* To expand the business, financing needs to be found.

Partnerships - Owned and run by two or more people.

Advantages:

* The responsibility of running and managing the company is shared between the two partners.

* Access to a wider range of skills.

* More ideas and strategies.

* Capitals from the partners can bring in more capital and expansion is possible.

* Greater ability to gain bank loans/ financial backing.

* No need to file accounts for the public.

Disadvantages:

* Partnerships have unlimited liability.

* If a partner leaves or he/ she is not for filling his/ her position it could affect the business.

* A decision has to be made a partner can take it upon his/ her self to make the decision and not consult the other partners.
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Private limited companies - Often a family run business with the protection of limited liability.

Advantages:

* Shareholders who own the company may have limited liability.

* Business finances and the owner's finances are separate.

* Can take more risks due to limited liability

* Usually shareholders are closely involved with the running of the business.

* Can raise capital more easily.

* More professional appearance: more internal structure.

Disadvantages:

* Shares can only be sold with the permission of the shareholders.

* Shares cannot be sold ...

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