Mind Map

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5 Types/Forms of business

door JT - 10BV - Rick Hansen SS (2542)

Competitive advantage 2

door Ore Omisore

Types of Business

door Anosha Shabbir

Forms Of Business

door JF - 10FI - Rick Hansen SS (2542)

Mind Map

Corporation

Advantages: limited liability and more financial resources to expand and grow

Disadvantages: More complicated to set up and it must be registered in every province it operates.

Franchise

Has a reduced risk of failure and being your own boss.

Initial cost is high and you'll have less privacy since you are sharing your information with the franchiser

Cooperative

Advantages: shared skills and services and shareholders control what is sold and price of goods.

Disadvantages: Decision may be harder because of multiple members and commitment may vary because some people might have a lot of money and stake and some may take things more seriously than others.

Partnership

Advantages: Inexpensive to set up and organize ($1000), easier to borrow from the bank, more brains filled with knowledge, experience, and skills.

Still unlimited liability, Personal assets may be used to pay of debts, and unworkable conflicts can rise between the partners.

Sole Proprietorship

Advantages: You keep all the profits, you make the decisions, you are your own boss, and financial information is kept secret.

Disadvantages: Unlimited Liability, your face personal and financial challenges as well as your own, will be harder to borrow money, and a huge time commitment.