Research task two

Sole trader

A sole trader is someone who is self employed and runs their own business as an individual. They essentially are the business. this can be a good and bad thing, for example, they are in charge of everything, assets, profits, what jobs to do when, this would mean their work week is very flexible. But there are downsides to this as well, they have to be their own motivation because no one is making them do any work, they are responsible for paying for everything ( travel, equipment etc.)this could get quite pricey.

Limited companies 

Typically limited companies are better than sole traders because their debts only go up to  amount of money they invest, whereas things like sole traders it could extent and they could lose a lot of money and assets. The downside is that limited companies require a lot more paper work and preparing and there usually isn't just one owner it's split into shares.

partnerships 

A partnership is a formal agreement by two or more people to spilt the the responsiblity of a buisness and spilt the profits. There is a thing called a silent partner, these won't get involved in day to day business. Partnerships acna be a good and bad thing, there's a lot less work to do because the work load can be divided up. Although it also means the partners won't be making as much money than if they were to start a business ny themselves, although with more people it is a lot easier to fund things.

Social enterprises 

Social enterprises are like most businesses but they use their profits to donate and reinvest for positive social change. These kind of businesses are really good for communities because they create jobs for people who need them. Local people would be more inclind to use these businesses because when they profit so does the community. Although they don't make much money for the owners, but that's not really the point in them.

Charities

Charities and social enterprises are quite similair in the fact that they both give back to a community, they both want to make a positive sociatal change, although the difference is that charitites do this by collecting donations and setting up fundrasiers social enterprises sell products and services to create positive changes.

Unincorporated associations

A unincorporated association isn't legally a company, they can be things like clubs and charities, they are very cheap and easy to form, they can be as small as only 2 people. The issue is becuase they are unincorporated they can't own any property, sign any contracts etc