Different Types Of Business Part 1 T1Presentation Transcript
Different Types of Business Types of Businesses Sole Traders Partnerships Privates Limited Company LTD (next lesson) Public Limited Company PLC (next lesson) Franchises Multinational Companies (Next Lesson)
Its very easy to set up as a sole trader.
Sole Traders contribute to 90% of the British Economy.
High Risk is involved in owning a sole trader business you are liable for the business.
A sole trader is owned by and controlled by one person.
Sole Traders : Personal Qualities
You will need certain qualities to succeed as a sole proprietor. Some of the most important are:
Persistence Enthusiasm Ability to work hard Willingness to take risks Organisational Skills Tolerance and Patience
A Sole Trader has to make all the decisions about the business.
Sole Trader has to use their own money or borrow money from friends or banks.
The princes trust and the government give start up grants to young people setting up a business.
Sole Traders have unlimited liability.
Partnerships are owned by at least 2 partners
You can have up to…….. 20 people as partners.
Sleeping partners take no active role / part in the business.
Responsibility is shared and different people bring in expertise.
Partners also have unlimited liability.
Most Partnerships write a Deed of Partnerships – a set of rules to follow if trust between the partners break down.
The deed covers the sharing of profits and losses, the financial contribution of each partner, their responsibilities, and how to add more partners.
1980 Partnership Act means that without a deed the partners will share all losses and all profits equally.
A Franchise is an agreement by which a company (the franchiser) allows a smaller firm (the franchisee) to trade goods or services under its brand name.
They have better chance of establishing new businesses than sole trader.