FORMS OF BUSINESS 2 Flashcards
1
Q
what is franchising?
A
franchisor grants a licence to another business to allow it to trade using the brand/business format
2
Q
advantages of operating as a franchise
A
- still your own business
- advice, support,training
- easier to raise finance
- lower risk method of market entry + lower failure rate
3
Q
disadvantages for the franchisee
A
- not cheap
- restrictions on actions, including selling
4
Q
what is a public limited company?
A
- shares are traded on the stock market
- public companies have more shareholders
- subject to greater regulation in terms of public disclosure of financial and other information
5
Q
what is a private limited company?
A
small to medium-sized business, usually run by the family that owns it.
Shares are sold to friends, family, and business
associates and may not be sold on the stock market.
