Business status/form/type of ownership

Businesses can be at difference stages e.g.

Start ups: a business start-up means creating a new business, which stands alone, and is not tied to other organizations, except in the normal course of trading. It does not mean the idea is necessarily new, only that the vehicle which is set up to exploit it is.

Franchise: a franchise is a method for starting a new business within the frame work of an existing, larger business entity. it is a legally separate enterprise operating in some way under the umbrella of another organization .

Buying an existing business
Outright purchase: this involves buying an existing business from somebody else; although there is a new business owner, the business does not start from scratch but is already trading in some way.

Buy-out: a buy-out is buying an existing business from within, rather than from the outside recently, this has become an increasingly popular form, as larger corporations have sold off parts of their corporation to the existing management team , same buy –outs , such as National freight , are large enough not to be classified as small business at all.

Buy-in: this occurs when the existing owners accept a new partner, or shareholder, who buys into a small firm which already exists

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