Factors affecting

Other factors

Objectives of the business

Risk/ Liability Access to Capital Ownership & Control Use of Profit
Sole trader Unlimited Bank loan/ Family/ Friends Complete own and control Income tax
Partnership Less Partners/ ↑ Shared by 2-20 people Income tax
Franchise Less Shared by franchisee and franchisor
LTD Limited Shareholders Private/ Family business
PLC Limited Shareholders Regulatory control, mostly managers take control Cooperation tax
MNC Host country (first established) Cooperation tax