Forms of businesses

Created by

Zainab Asghar

Cards (23)

What is a partnership?
A partnership is a formal arrangement of two or more parties to manage and operate a business with a view to making a profit. A partner can be an individual or another business.
Advantages of a partnership
Able to share the workload
More people= more ideas
Easy to get started
Disadvantages of a partnership
Unlimited liability
Partners have to share the profit
Partners might disagree
What is a sole trader?
When one person sets up, runs and owns an entire business
Advantages of a sole trader
Easy to set up
You keep all the profits
Disadvantages of a sole trader
Can be difficult to raise finance
Unlimited liability
What is a private limited company?
A business that is owned by its shareholders, run by directors and where the liability of shareholders for the debts of the company is limited.
Advantages of an LTD
Limited liability
Higher business profits
Disadvantages of an LTD
Higher set up costs
More paperwork
What is a public limited company?
A public limited company is a business that is managed by directors and owned by shareholders. A public limited company can offer shares to the public.
Advantages of a PLC
limited liability
Ability to raise finance through share capital
Disadvantages of a PLC
Higher set up costs
Financial situation is public
What is a franchise?
the right or licence granted by a company (franchisor) to an individual (franchisee) to market and/or trade products and services in a specific area or territory.
Advantages of Franchising
less risk, training and support, brand recognition, easier access to funding
Disadvantages of franchising
limited control
Initial cost
What is a social enterprise?
A business that trades for a social and/or environmental purpose. They trade in order to benefit the community. They have social aims as well as financial.
Advantages of social enterprise
Employee satisfaction
increased productivity
Better customer relationships
Disadvantages of social enterprise
Amount of paper work
time consuming
Technical skills developement
What is a lifestyle business and its aims? 
A business that generates enough money for the entrepreneur to work and live from anywhere.. The aim is to provide great quality of life for the owner. The business is started when the owner hopes to sustain a certain level of income.
Advantages of lifestyle business
Able to control most aspects of the business
Able to pursue personal goals with the profit generated from the business.
Disadvantages of lifestyle business
Its expensive
Difficult to get hold of experienced workers
Advantages of an online business
easy to set up
available to customer 24/7
Disadvantages of an online business
cost to start
competition