An advantage of this is that he makes all his own decisions.
Johnny has just left school and he works alone as sole trader.
An advantage of this is that finance can be raised from members.
After a few months he gets to many orders for him to handle so he gets his friend to help him making a partnership
After a while they started cleaning all the windows in Berwick. They start retraining with the profits they've made so they can fit windows as well they invite some friends and family to buy some shares in they're. Making them a LTD company.
An advantage of this is that they are likely to employ specialists.
An advantage of this is that there is a good chance of success.
After the word of theyre business spread quickly a business man from down south. Who would like to use their name in return for a share of their profits. Making them a franchise.
An advantage of this is that they can get money from selling shares to the general public.
This worked well. But they decided they'd like to operate in Europe as well. The business is now open to the public to buy shares it is now run by a PLC.