Introduction
In this essay I will explain about business ownerships how they may change overtime and why a business will want to change his business in to an improved and developed business franchise. To help me with this work we:
1) used our books
2) and handouts from the internet
Sole trader
This is a business run by someone who wants to be a one man band and also responsible for every aspect of running the business. This type of ownerships allows the owner of it to make decisions with freedom because there will be no one they need to report back to. Also a sole trader is relatively easy to set up as soon as it appears on the Market. Sometimes it is argued that for a new business man it is easier to start off as a sole trader and work they way up the business ownership Ladder.
• The owner gets to decide what happens and has every say in the business
• They will get to keep the profits made and can decide what to do with this money
• The owner can decide the name the way everything is run and how the business operates during the working week.
• They will get to decide who does what and how much money they pay the employee that is if they choose to hire employees.
Disadvantages
• They have unlimited liability and have to pay for everything to do with the business
• It is not easy to expand when being a sole trader
• Taking breaks can not be easy
• There will be lack of ideas as it is a one man ownership
• Sometimes the tax for a sole trader can be unfriendly and as a result the owner could be paying a heavy weight of taxes
Here are some examples of sole traders
Partnership
A partnership is a business owned and run between a minimum of 2 and a maximum of 20 people. Each person of the business must contribute to the business by giving money work and in return they expect a share of profits and losses with in this company. These...