The Types of Business Ownership Essay examples - 840 Words

The Types of Business Ownership This report is about the advantages and disadvantages of different types of business ownerships. Introduction I am going to write about the advantages and disadvantages of different business ownerships including: * Sole Trader * Partnership * Franchise I will include the definitions of some of the business ownerships. Main Body SOLE TRADER Sole trader, as the name suggests, is where an individual is the sole owner of a business. The business is often quite small in terms of size (as measured, for example, by sales generated, or number of staff employed) however the number of these businesses is very large indeed.†¦show more content†¦However, as the expansion of the business depends on the amount of capital you are personally able to inject, you may find as a sole trader that investing in the growth of the business very difficult, as capital is often not easy to find. DISADVANTAGES * As a result of the inability to assist expansion, your competitors would have the edge over your sole trader business; for example, businesses with greater access to investment would be able to adapt more quickly to market demands leaving you struggling to compete. * The pressure put upon the sole trader must not be ignored, and if you are thinking of becoming self-employed as a sole trader you must address this issue as it could ultimately threaten the survival of your business. * Apart from the pressures placed on the sole trader by the larger organisations, you are also fully liable financially, and the need for your business to examine the implications and consequences of bankruptcy or loss of personal possessions due to the individual accepting unlimited liability must also be considered. The larger your business becomes the great risk will be undertaking in operating as a sole trader. PARTNERSHPS A partnership is a relationship existing between two or more persons who join together to carry on a trade or business. Each partner contributes money, property, labour, or skill to the partnership and inShow MoreRelatedTypes Of Business Ownership And Ownership Essay1327 Words   |  6 Pages Types of Business Ownership Name Institutional Affiliation â€Æ' Business Ownership Introduction Business ownership refers to having control over a business enterprise and exercising this power by dictating its operations, functioning, and management. Ownership can be acquired either through franchising or purchasing an existing business. There are three types of business ownership, namely sole proprietorship, corporation, and partnership. A single entrepreneur can own several businesses underRead MoreTypes of Business Ownership1072 Words   |  5 PagesThe sole proprietorship is the simplest form of business organization. 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