1.5.3 Business objectives & 1.5.4 Forms of business GapFill

There are lots of different forms of business and the form will depend on the  owner staff management suppliers  of the business, the market that the business trades in and the products and services that it provides.  Also the level of profit that the business creates will have a significant impact on the form.

When   a person an entrepreneur a man a woman  creates a business and is the only owner and wants to start up quickly and keep matters simple, they will choose to be a   sign seensole soul  trader, sometimes known as a sole proprietor.  Sole traders can have staff, but there is only one owner. They have   accounts business unlimited limited  liability but they don't have to publish accounts, so paperwork can be quite simple.  This makes it an attractive form of business for tradespeople such as plumbers and for craftspeople such as potters. 

Some businesses will need more than one owner and this becomes a   ltd corporation group partnership .  This is a very popular form of business for a group of experts who wish to create a business together, examples being dentists, vets and accountancy firms.   The advantage is there is more capital in the business, but the disadvantage is there can be   war conflict struggle  fight  and disagreement on how the business should be run.

Some businesses cannot operate with unlimited liability, an example being a scaffolding company.  If the scaffolding fell onto a passer-by they may sue the company and the owners.    PartnershipLimited Unlimited Sole trader  liability will protect the owners and if this is necessary due to the nature of the business then they might choose to become a private limited company, also known as a   pcl plc Tld Ltd .  A Ltd can issue shares but only to friends and family of the owner. 

Some business owners prefer the support of a national company or well-known brand name and will buy a  franchise partnership franchisee ltd  agreement.  The franchisor will sell the rights for the franchisee to sell their products. Famous franchises are Subway, Pizza Hut and McDonald's so large profits can be made from fast-food franchises. There are a huge variety of franchise types from cleaning companies to children's nurseries. Franchisees have to pay  royalties expense debts money  to the franchise company, but they do get the support of national marketing campaigns. 

As companies grow and expand they will need to attract new investment and so might float on the stock market. This means the business can sell shares to the general public and so it becomes    an unlimited a closed a public limited a partnership company, or plc for short. This is an expensive and complicated process but selling shares may give the business the financial boost it needs to achieve its objectives. Examples are Sainsbury's and Shell.