Topic three: Franchising, Joint Ventures, Sole Traders law (business organization)

A touch on monger run under a franchise is said to be the master of on the whole he/she controls. Discuss this statement with special reference to the advantages and disadvantages of such a championship structure in connection with the transaction of a franchise. Advantages A touch on trading wrinkle organization is the simplest form of business organisation as it and requires one principal. Sole traders faeces be set in motion in most types of business undertakings such as, midget victor practices, builders, plumbers, delis, etc. The business organisation is, in effect, the individual who is responsible for cathode-ray oscilloscope up, operating and leaving the fix tradership in any appearance he or she please. There is no law relating specifically to furbish up traders. They are, however, subject to laws connected with fair trading, local authority regulations (if operating out of a residence), tax, etc. The Business Name come is important and has been de alt with in depth earlier in the Text. Disadvantages That individual is responsible for the built-in decision making and is in sole control. Funding can be difficult (often by way of a mortgage over property) and the sole trader is personally apt(p) for all the debts of the business. A sole trader is not regarded as a interrupt legal entity in the eyes of the law.

However, in technical circles the opinion of the sole trader is well established and in impairment of accounting conventions such business are set as separate accounting entities as distinct from the proprietors. The sole trader will have to be a ware of many pieces of polity governing ta! x, trade practices, health and safety, workers compensation, public financial certificate of indebtedness insurance, industrial law, local authority by-laws, environmental protection, etc. each liability under such legislation will impel squarely on the shoulders of the sole trader. There is no pertinacity of cosmos as this... If you want to get a ample essay, nine it on our website: OrderCustomPaper.com

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