Business Models Comparison

  • Types of Partnerships
    • General Partnership
    • All partners share management and full liability.
    • Limited Partnership
    • Some partners only invest money, do not manage, and have limited liability.
    • Limited Liability Partnership (LLP)
    • All partners manage the business and all have limited liability. No one is personally responsible for business debts.

Partnership Strengths and Weaknesses

  • Strengths

    • Easy to form
    • No special business taxes
    • Shared decision-making
    • Easier to raise money than sole proprietorship

  • Weaknesses

    • Sole Proprietorship
    • Unlimited liability - owner fully responsible
    • Hardest to raise capital - relies on owner’s money
    • Hard to raise money
    • Business ends if the owner dies
    • Partnership
    • Shared liability - partners responsible for each other
    • Risk of disagreements and arguments
    • Can end if a partner leaves or dies
    • Corporation
    • Limited liability - owners not personally responsible
    • Easiest to raise capital - can sell stocks and bonds
    • Can be expensive to set up with more regulations
    • Less personal control for owners

Case Study 1: Local Café Startup

  • Scenario: Planning to open a café in Doha

  • Business Structure Options:

    • Sole Proprietorship

    • Advantages: cheap startup, full control, simple setup

    • Disadvantages: personal financial risk, hard to secure big loans, business ceases if owner quits

    • Partnership

    • Advantages: share costs and ideas, less pressure

    • Disadvantages: potential for conflict, must share profits, business can end if a partner leaves

    • Corporation

    • Advantages: access to investor funding, protection of personal assets, potential for growth

    • Disadvantages: complex, expensive to start, less personal control

Case Study 2: Tech Startup with an App

  • Scenario: Developed a fitness app and seeking to scale

  • Business Structure Options:

    • Sole Proprietorship

    • Advantages: easy to start, full control, one owner

    • Disadvantages: difficulty in raising money, highly personal financial risk

    • Partnership

    • Advantages: shared workload and risk, diverse skill sets

    • Disadvantages: potential disagreement over decisions, business continuation issues

    • Corporation

    • Advantages: secure large funds, rapid growth potential, personal liability protection

    • Disadvantages: costly, subject to government regulations

Multiple Choice Questions: Business Structures & Types of Partnerships

  1. Which model has unlimited liability and is hardest to raise capital?

    • B. Sole Proprietorship

  2. In a general partnership, which is true?

    • C. All partners share management and liability

  3. Main advantage of a corporation?

    • C. It raises capital more easily

  4. Weakness of partnerships?

    • D. One partner may be liable for another’s actions

  5. A limited partner typically:

    • C. Only invests money and has limited liability

  6. Model with double taxation?

    • C. Corporation

  7. What happens when a sole proprietor dies?

    • C. The business usually ends

  8. Easiest to form but most personal risk?

    • D. Sole Proprietorship

  9. Strength of partnerships?

    • C. Shared decision-making

  10. Which type must file a charter?

    • C. Corporation

Education and Work Experience

  • Formal Education:

    • Structured learning (e.g. high school, university, trade schools)
    • Certifications and licenses

  • Informal Education:

    • Unstructured learning methods (e.g. reading, self-study, learning from mentors)

  • Work Experience:

    • Application of skills through part-time jobs, internships, and volunteer work

Skills Overview

  • Technical Skills:

    • Computer programming, equipment operation, data analysis

  • Soft Skills:

    • Communication, leadership, problem-solving, teamwork, time management

  • Examples:

    • Formal Education: Electrician course completion
    • Informal Education: Self-learning video editing
    • Work Experience: Internship in software
    • Soft Skills: Leadership in group projects

SMART Goals Framework

  • Specify, Measure, Achieve, Relevance, Time-bound
  • Example Goals:
    1. Fitness: Jog three times a week for health
    2. Financial: Save 500 QAR in 10 weeks for headphones
    3. Academic: Study for 30 minutes daily to improve math grade