Business Ownerships

In: Business and Management

Submitted By abul247
Words 1423
Pages 6
Purpose
All businesses are made for a purpose. Basically when they do something, they do it for a reason. Sometimes businesses do not make a profit or a loss, they provide services to their customers. For example Vauxhall produces goods to sell, so they will be examining their profit or loss at all times. Solicitors provide legal service to help people meet their needs. They are not making a profit or loss. This is their purpose.

What is franchise?
A franchise is an agreement or license between two parties which gives a person or group of people (the franchisee) the rights to market a product or service using the trademark of another business (the franchisor). The franchisee has the right to market the product or service using the operating methods of the franchisor. The franchisee has the duty to pay the franchisor certain fees and royalties in exchange for these rights. The franchisor has the duty to provide these rights and support the franchisee. Franchising is not a business or an industry, but a method used by businesses for the advertising and distribution of their products or services. Both franchisor and franchisee have a strong fixed interest in the success of the brand and keeping their customers happy.

What is sole trader?
When setting out in business, you will be setting up the business on your own, using your own personal capital to get started. If this is the case you will be known as a Sole Trader, the sole trader is the simplest business to develop.

What is public and private limited company?
Types of limited company
Most small businesses that choose for limited company status become private limited companies rather than public limited companies (PLCs). The main differences between them are that: * PLCs can raise money by selling shares on the stock market - private limited companies cannot * PLCs must have share capital of at…...

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