Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Forms of business organisation | Business Organisation

3,564 views

Published on

Published in: Education
  • Be the first to comment

Forms of business organisation | Business Organisation

  1. 1. Business Organization Concepts
  2. 2. The Different Types of Business Ownership
  3. 3. Sole ProprietorA business owned and operated by one person.The owner is responsible for all operations of the business and assumes all the risk.
  4. 4. Advantages of a sole proprietorship Owner makes all decisions Owner is her or her own boss Owner keeps all the profits All financial informatio can be kept secret This type of business is easy to start or close
  5. 5. Disadvantages of a sole proprietorship Owner has responsibility for all debts Costs and time commitment can be high Funding can be difficult to obtain Owner is responsible for all aspects of the business Owner doesn’t have fringe benefits
  6. 6. Partnershipa form of business organization in which two or more people own and operate the business together
  7. 7. Advantages of a partnership Partners co-own the business They share responsibilities They may have greater financial resources than sole proprietors They share business losses They share time commitment
  8. 8. Disadvantages of a Partnership Partners have unlimited personal liability for all the other partners They may have conflicts Profits are shared Partnerships are more difficult to close down than sole proprietorships Agents of the business dillemma
  9. 9. CorporationA legal entity that exists independently of its ownersOwners are called shareholdersThree types: – Private – Public – crown
  10. 10. Advantages of a corporation The owners are shareholders. They have limited liability for the debts of the corporation and share the profits Usually shareholders do not operate the company – they hire employees to do so Corporations can usually raise funds more easily than sole proprietors or partners
  11. 11. Advantages of a corporation Corporations usually have a lower tax rate than private owners A corporation can contninue to exist after the death of its owners
  12. 12. Disadvantages of a corporation Corporations have more complicated structures than sole proprietorships or partnerships Employees who are not owners may not be committed to the business
  13. 13. Disadvantages of a corporation Corporations must publish annual reports, which could give away important secrets to competitors The value of company shares can change depending on changes in the stock market
  14. 14. Co-operative Businesses owned and operated by a group of people with a strong common interest Start-up costs are shared among the members of the co-operative Members own and control the business and make all business decisions
  15. 15. Advantages of a co-operative Members own and control the business Members share the start-up costs and the running of the business They share the financial risk Members may pay less for goods and services and get more for those they sell
  16. 16. Disadvantages of a co-operative Because each member only has one vote, members may not want to invest money for expansion Because of the number of members, making decisions can be difficult Members can have conflicts
  17. 17. FranchiseA business in which a franchisor sells to another person, called the franchisee, the rights to use the buness name and to sell a product or service in a given territory
  18. 18. Advantages of a franchise Franchisees buy a business with a good reputation Franchisors supply training and financial knowledge Franchisors usually provide packaging, advertising, and equipment to the franchisee
  19. 19. Disadvantages of a Franchise Franchises can be expensive to buy Franchisees may have to follow a lot of rules laid down by the franchisors If a franchisor’s business fails, so will the franchisee’s business
  20. 20. Thank You Homework Help | Assignment Help http://www.assignmentcentre.com.au

×