Advantages of a sole trader

- The owner keeps all the profit
- They are independent- owner has complete control
- It is simple to set up with no legal requirements
- Flexibility - for example: can adapt to change quickly
- Can offer a personal service because they are small
- May qualify for government help


Disadvantages of a sole trader

- Have unlimited liability
- May struggle to raise finance - considered too risky by those that lend money
- Independence may be too much of a responsibility
- Long hours and very hard work
- Usually too small to exploit economies of scale
- No continuity - the business dies with the owner


Advantages of a partnership

- Easy to set up and run - no lega, formalities
- Partners can specialize in their area of expertise
- The job of running a business is shared
- More capital can be raised with more owner
- Financial information is not published


Disadvantages of a partnership

-Partners have unlimited liability
- Profit has to be shared
- Partners may disagree and fall out
- Any partners' decision is legally binding on all
- Partnerships still tend to be small


Advantages to the franchisee

- Less risk - a tried and tested idea is used
- Back-up support is given
- Set-up costs are predictable
- National marketing may be organised


Disadvantages to the franchisee

- Profit is shared with the franchisor
- Strict contracts have to be signed
- Lack of independence - strict operating rules apply
- Can be an expensive way to start a business


Advantages to the franchisor

- Fast method of growth
- Cheaper method of growth
- Franchisees take some of the risk
- Franchisees more motivated than employees


Disadvantages to the franchisor

- Potential profit is shared with franchisee
- Poor franchisees may damage brand's reputation
- Franchisees may get merchandise from elsewhere
- Cost of support for franchisees may be high


Advantages of private limited companies

- Shareholders have limited liability
- More capital can be raised
- Control cannot be lost to outsiders
- Business continues if a shareholder dies
- Has more status - for example than a sole trader


Disadvantages of private limited companies

- Financial information has to be made public
- Costs money and takes time to set up
- Profits are shared between more members
- Take time to transfer shares to new owner
- Cannot raise huge amounts of money like PLCs


Advantages of public limited companies

- Large amounts of capital can be raised
- Shareholders have limited liability
- PLCs can exploit economies of scale
- May be able to dominate the market
- Shares can be bought and sold very easily on the stock market
- May have a very high profile in the media


Disadvantages of public limited companies

- Setting up costs can be very expensive
- Outsiders can take control by buying shares
- More financial information has to be made public
- May be more remote form customers
- More regulatory control owing to Company acts
- Managers may take control rather than owners


One difference between private limited companies ( Ltd ) and public limited companies ( PLC )

PLC -shares can be bought and sold in the stock market
Ltd - shares in private limited companies cannot be traded on the stock market


Advantages of face-to-face communication

- Allows immediate feedback
- Encourages cooperation
- Allows new ideas to be generated
- Saves time


Disadvantages of face-to-face communication

- Negative body language may create a barrier
- A record of the message may not be kept
- Non-relevant information may be included
- In a meeting, some people may not listen
- Limits to the number reached, for example: by the capacity of largest meeting room


Advantages of on-the-job training

- Output is being produced
- Relevant because trainees learn by actually doing the job
- Cheaper than other forms of training
- Can be easy to organise


Disadvantages of on-the-job training

- Output may be lost if workers make mistakes and through the time diverted to showing the new recruit how to do things
- May be stressful for the worker - particularly working with others
- Staff may get frustrated if they are 'unpaid' trainers
- Could be a danger to others, for example, surgeon or train driver


Advantages of off-the-job training

- Output is not affected if mistakes are made
- Learning cannot be distracted by work
- Training could take place outside work hours if necessary
- Customers and others are not put at risk


Disadvantages of off-the-job training

- No output because employees do not contribute to work
- Some off-the-job training is expensive if provided by specialists
- Some aspects of work cannot be taught off-the-job
- It may take time to organise