Учебно-методическое пособие по обучению профессиональному общению. Коровина Н.А - 16 стр.

                                  Sole Trader                                                                 The sole proprietor
            Advantages                            Disadvantages                             This is the simplest and the oldest form of business enterprise
1. Only a relatively small amount      1. Unlimited liability – could lose          and often referred to as the one-person business. A single person pro-
of capital is needed to start up the   everything                                   vides the capital, takes the decisions, and assumes the risks. He or she
business
2. The owner works for him or          2. If the owner dies or is ill, hard to      is solely responsible for the success or failure of the business and has,
herself                                continue the business                        therefore, the sole rights to such profits as may be made, or, alterna-
3. Decisions can be taken quickly      3. Difficult to obtain extra capital for     tively, bears the sole responsibility for such losses as may accrue.
                                       expansion                                            The strength of this type of firm lies in the direct personal inter-
4. Profits are not shared              4. May lack ideas, as less people to ask     est of the proprietor in the efficiency of his enterprise. Ownership and
                                                                                    control are vested in one person who enjoys all the fruits of success
                                  Partnership                                       and hence has a great incentive to run the firm efficiency.
            Advantages                             Disadvantages                            The great disadvantage of the sole proprietor from an enterprise
1. More capital available              1. Unlimited liability                       lies in the fact that the owner is personally liable for the debts incurred
2. Each partner can specialise on      2. Action of one partner binding on          by his firm and his liability is unlimited. All his personal possessions
a particular task                      others                                       are at risk and may be seized to meet creditors demands in the event of
3. Range of ideas available            3. May be problem of continuity on
4. Partners can share any losses       the death of a partner or if disagree-       the business becoming insolvent. Another disadvantage of this type of
(and profits!)                         ment among partners                          firm is the strict limitation of its ability to acquire capital for expan-
5. Accounts need not be published      4. Capital may still be difficult to raise   sion. Finance is restricted to the amounts which the entrepreneur is
                                                                                    able to provide from his own resources and whatever sums he can
                            Private Limited Company                                 borrow on his own security.
             Advantages                             Disadvantages                           We find the one-person business prevalent in farming, retailing,
1. limited liability                    1. Less control for owners than in          building, repair and maintenance work, and personal services such as
2. Still more capital available as      sole trader/ partnership                    hairdressing.
more owners (shareholders)              2. Capital less easy to raise than in
3. Company has its own legal iden-      public limited company as shares                                          Partnerships
tity so can continue beyond a death     cannot be sold to general public
or disagreement                                                                            Partnerships are voluntary combinations of from 2 to 20 persons
4. Accounts need only be published                                                  formed for the purpose of carrying on business with a view of profit. A
in brief form                                                                       person who joins a partnership, supplying capital and sharing in the
                                                                                    profits, but taking no part in the management is known as a dormant or
                            Public Limited Company                                  sleeping partner. Partnerships are a common form of business organisa-
             Advantages                                Disadvantages                tion in such professions as law, accountancy, surveying, and medicine.
1. Limited liability                        1. Large firms may suffer from                 The advantages of this type of firm are similar to those of the
2. Easier to raise capital as shares        diseconomies of scale                   one-person business; it is a flexible organisation which allows a
can be sold to the general public           2. Easy transfer of shares makes        greater degree of specialisation than the one-person business. Partners
3. These firms can often grow very          takeover bids possible                  usually specialize in one or more aspects of the business; one may be
large, benefiting from economies of         3. Full accounts must be published
                                                                                    responsible for buying, one for selling, one for production, and so on.
scale

                                       31                                                                               32