Business – 1.2 Business structure – Business ownership | e-Consult
1.2 Business structure – Business ownership (1 questions)
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Joint Venture
- Advantages:
- Risk and cost are shared between partners, reducing exposure for each.
- Combines complementary resources, expertise and market access.
- Often easier to secure finance because partners can pool capital and provide collateral.
- Disadvantages:
- Potential conflict over control, decision‑making and profit sharing.
- Limited lifespan – usually project‑specific.
- Differences in organisational culture can hinder integration.
Social Enterprise
- Advantages:
- Mission‑driven focus can attract ethical investors, grants and community support.
- Can differentiate brand and build customer loyalty.
- Potential tax reliefs and subsidies for social impact activities.
- Disadvantages:
- Balancing social goals with commercial profitability can limit growth.
- Access to traditional finance may be constrained; investors may expect lower returns.
- Governance structures (e.g., community ownership) can slow decision‑making.