Organisational Structure Unit 1

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  • Created by: Megnicpip
  • Created on: 03-05-17 20:25
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  • Business Ownership
    • Sole Trader
      • Description
        • 1 owner
        • 0 to any number of employees
        • It is in the private sector
      • Advantages
        • Own boss
        • Total control
        • Keep all profits
        • Easy to set up-few legal requirements
        • Greater opportunity for flexible working
      • Disadvantage
        • Lack of specialisation
        • Unlimited liability
        • Limited finance
        • No time off/holidays
        • No one to share decision making you entirely responsible
        • No continuity of existence
    • Partnership
      • Description
        • 2-20 owners
        • 0 to any number of employees
        • A deed of partnership
        • You can have a sleeping partner
        • Is in the private sector
      • Advantages
        • Shared decision making
        • Increased capital investment
        • Increased specialisation
        • Easy to set up
        • Easier to generate ideas
      • Disadvanatges
        • Unlimited liability
        • Profits have to be shared between partners
        • Limited finance
        • Partners may have disagreements
    • Franchise
      • Description
        • Method of business growth
        • A business allows another business to trade under their name
      • Advantages for Franchisee
        • Established name
        • Support of franchisor
        • Minimising risk
      • Advantages for Franchiser
        • Quick way to grow
        • Royalties from franchisee
      • Disadvantage for franchisee
        • Lack of control
      • Disadvantage for franchisor
        • Risk of reputation

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