Different Types Of Campanies
...set up
- Decide who to hire
- Keep accounts private
- Choose your own name
- Personal style of management
- Take own holidays
- No share holders
- Minimum politics
Sole Trader Disadvantages
- Increased risk
- Responsible for your own actions
- Capital requirement
- Increased pressures
- More isolated
- Reduced support
- More expensive
Being a sole trader is the easiest way to set up your own business, you will need to write up a business plan showing you have thought about your market this means if your product will succeed in your selected location. An example of a sole trader would be an Ice-Cream man, or a florist. These two examples are sole traders because they are self employed and do not need to hire many employee's as they would not get that many customers, they also do not have any share holders which means total control. In a sole trader company, it would involve just the one owner, and he would work for himself, therefore gaining all the profit. A sole trader does not have a large market as it is only a small firm and can't afford to keep up with all the latest marketing ways.
Partnership Advantages
- Less expensive
- Shared risk
- More support
- Less pressure
- Debt shared equally between all owners (advantage if you put more money into the company)
Partnership Disadvantages
- Less power
- Shared ownership
- Debt shared equally (disadvantage if you own less)
- Benefits shared
- Less profit
An example of a partnership could be a dentist, or an engineer. For a partnership to be formed you will need two to twenty people involved in the company. By being involved this means investing in the company and helping out in the work load. First you will need to prove to the bank that you will eventually be able to pay back loan by providing a business plan showing your location and market is good...
View Full Essay
