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Describe the Different Forms of Ownership of Businesses

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Introduction

´╗┐Unit One - Task One - Investigating Business Business Ownership Sole Trader A sole trader is a business owned by the person, even though they may employ workers. There are approximately 2.8 million sole traders in the UK and these businesses are simplest and most popular way of setting up the Business Ownership. A sole proprietorship also known as a sole trader or simply proprietorship is a type of business who is owned or run by one person between the owners and there is no legal distinction also. For Example, Hairdressers, Newsagents? shop (many small shops) My uncle runs 3 shops as sole trader and my dad is also part of his business as in partnership in Premier convenience shop at Rochester, plumbers, electrician, butchers, florist, window cleaner and many more are a sole trader that includes several retailers. This numeral of examples provides specialist and individual services. Any sole trader does not divide legal existence from their owner; a sole trader pays the money to employ out of their own pocket money. There are some advantages and Disadvantages of Business Ownership as Sole Trader The Advantages are: 1. They are really straightforwardly to set up: you can easily set up and a sole proprietor enjoys considerable degree of freedom in Business decisions, your own decision to run the business and at the same time you can get chance to be your own boss. 2. Flexible working hours and you are in charge of time making and keeping and they are no argue and disagree with it 3. All the profits: All the income can only belongs to you. 4. There are tax advantage of being a sole trader 5. Accounts are private: it can only send its accounts to the inner profits. The Disadvantages are: 1. Deficient of connection (continuity): Some sole trader might have staff of one. So owner might have some difficulty to get many jobs done because of large organisations and this can also time consuming, owner might lose some amount of profit. ...read more.

Middle

5. capitalisation of profits When these are completed, they are sent to the REGISTOR OF COMPANIES, who will then issue the business with CERTIFICATE OF INCORPORATION. For example in Verbal words this is really the birth certificate of the company, which allows to trade as a Private Limited Company. It can be exceptionally easier said than done for a shareholder in a (PLC) Private Limited Company to sell their shares, since a purchaser have got to originate within a framework of the company. Consequently, business affairs can?t be kept private like sole traders or a partnership. A private Limited Company is Business Firm in the private (non-public) sector of am economy, controlled and operated by Private individuals. In Private Limited Company the legal requirements for incorporating of UK Shares are as follows:- 1. An administrator and secretary can be of any ethnic group. 2. Secretaries can be corporate bodies or private individuals. 3. prior arrangement of a company Secretary is no longer required but the secretary duties remain 4. Business subscribers may be residents outside UK. 5. You must employ at least of 1 administrator. 6. There is no highest number of Directors. 7. Directors can be corporate bodies or private folks except in the case of single director companies which must have a personality as administrator. 8. There is no max & no min contributes to investment. 9. Directors necessitate not be officially trained. 10. There must be a minimum of one share in issue. 11. The maximum is determined by the share capital as specified in the Memorandum. 12. The business is compulsory to have a registered headquarters in the UK. Benefits of Forming a Private Limited Company (LTD): 1. Private Limited Company have limited liability, the shareholders can lose money that they have invested in Business, refusal substance in owned by the company. 2. They can invest much profit by selling large amount of shares, this can direct to larger sums of money to supply in industry. ...read more.

Conclusion

There industry famous for retiling means all the grocery, Banking, Insurance, Travel agency, Farming, motoring, Funeral directors, Pharmacies. The consumer Co-operative was founded in 1863; In Manchester, England, United Kingdom is the main headquarters and Peter Marks who is chief Executive of this Business.Alpha Communications Ltd, in Durham is also a design Company. It is also a co-operative because each worker jointly own and controls by the company. The advantages of Co-operative Organisations Different cooperative organisations or cooperative societies have different advantages for its members. Even then there are some common advantages which the entire co-operatives offer and these are as follow: 1. Limited Liability: The liability of the membership in this organisation in limited to their shares or guarantee given by them. 2. Each worker/owner has an equivalent share in the business and one vote each one. 3. Easy Formation: A co-operative society can be formed easily; any adults can establish a co-operative society by getting registered with the Register of Co-operative societies. 4. Decisions are made jointly be the owners and in the interests of everyone. 5. Jobs can be alternate so people can widen their skills and the smallest amount of jobs can be common 6. Supply of goods at cheaper Rate: The societies make bulk purchase directly from the wholesale traders and producers, so the goods have became at cheaper rates. That is how these upper classes market make their benefit. The disadvantages of Co-operative Organisations 1. If everybody is involved in decision-making then it may take a long time to choose the right choice, tough business decision may disagreement with member of staff, such as sacking a worker even if this would be in the best attention of the business, this means they make sacked the main member of staff who is more attention to the business 2. Expanding the business may be complicated as shares cannot be advertised and sold to the public, unlike a public limited company. 3. Banks and other financial organisations are repeatedly distrustful of lending capital to co-operatives because there is no predictable organizer. http://en.wikipedia.org/wiki/The_Co-operative_Group Harigna Hinglajia Candidate No: 5225 Centre No: 61217 ...read more.

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