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UNIT 5 BUSINESSES PART 1

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tabunewa's version from 2017-03-12 12:32

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Question Answer
What are the types of business organizationsole traders and partnerships, private and public limited companies, franchises and joint ventures, the role of public sector organizations
What are the forms of business organization2 types:sole traders and partnerhips. Sole traders- owned and managed by on person for example a florist. The reasons to become a sole trader: Make your own decisions, When and how many hours to work, business uses skills and interest. Partnerhips are made up of 2 or more people that share profits
Advantages and disadvantages on becoming sole traders and partnershipsSole traders . Advantages:quick to set up business, maes all the decisions, sut up with a small start up capital, owner keeps all the profits. Disadvanatges-Risk losing personal wealth, unlimited liability, difficult to raise funds, difficult to compete with larger businesses, lacking skills, long hours to work, if the sole trader dies or retires the business no onger exists. Partnerships: advanatges: easy to set up deed oof partnership, partners acess to business greater access funds, shared decision making , share management and work load. Disadvantages: unlimited liability, shares profits, business ceases to exist if partners leaves, decisions binding on all partners, difficult to raise finance
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