BTEC national- Unit 1- Introducing the hospitality industry- Ownershup
- Created by: MollieBrady
- Created on: 29-11-18 11:17
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- The structure and services of the hospitality services
- Sole Trader
- Any business that is owned and controlled by one person- they may employ workers
- Advantages- 1.Owner can keep all of the profits. 2. Business is easy to set up, with few start-up costs.
- Disadvantage- 1. Unlimited liability- if business gets into debt, owner is the only one to pay it. 2. No one to share risks and decision making with
- Disadvantage- 1. Unlimited liability- if business gets into debt, owner is the only one to pay it. 2. No one to share risks and decision making with
- Advantages- 1.Owner can keep all of the profits. 2. Business is easy to set up, with few start-up costs.
- Any business that is owned and controlled by one person- they may employ workers
- Patnerships
- Business owned by two or more people.
- Advantages- 1. Access to a wider range of skills, talents and ideas. 2. More capital money can be made to run and expand business.
- Disadvantage- 1. The profits have to be shared. 2. Business partners may not get along.
- Business owned by two or more people.
- Limited companies
- Private limited companies
- Often small businesses and family run.
- Advantages- 1. Easier to raise funds to help the business survive/grow. 2. Shareholders have limited responsibility.
- Disadvantage- 1. Control of the company becomes more spread as the structure grows. 2. More complicated to set up.
- Often small businesses and family run.
- Public limited companies
- Large businesses, shares are usually traded on the stock exchange and can bought on the stock exchange.
- Advantages- 1. The value of the shares can go up. 2. The shareholders have limited responsibility for the business.
- Disadvantages- 1. The business can be hard to set up with more legal formalities involved. 2. The value of the shares can go down.
- Large businesses, shares are usually traded on the stock exchange and can bought on the stock exchange.
- Private limited companies
- Franchises
- Where the franchise owner allows another business, the franchisee, to trade under its name and copy its business.
- For franchiser:
- Advantages- 1. Earn more money from franchisee. 2. the business can grow quickly.
- Disadvantage- 1. if franchisee is bad, then makes company look bad.
- For franchisee:
- Advantages- 1. The franchiser provides advertising, packaging and equipment. 2. Gain an established business name and brand.
- Untitled
- Sole Trader
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