• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Exploring business purposes

Extracts from this document...

Introduction

Exploring business Purposes In this assignment I will be describing the propose, ownership, advantage and disadvantage of four types of organisations. The four Organisations I have chosen are: * Sole Trader * Partnership * Private limited company * Public limited company 1. A Sole trader can be a mobile hairdresser who will provide a service. A Sole trader is an individual who is responsible for supplying or borrowing all the money required by the business and for actually running the business on a day to day basis. The most common sorts of sole traders are craftsmen and women. Sole traders business covers a very wide range of activities The advantages of being a sole trader are: * There are no particular legal formalities to complete before Commencing to trade * No legal requirements governing the layout of the accounts * annual accounts do not have to be audited * the owner has the freedom to run the business in his or her way. ...read more.

Middle

The advantages of a partnership are: * It is easier for partners than sole traders to raise capital because all of the partners can pool their resources. * Partners can arrange to cover one another at time of illness or holidays * Partners can share their expertise and their workload. * A partnership like a sole trader does not have to publish its accounts or have them audited. * Additional capital can be raised by introducing more partners into the partnership. The disadvantages of a partnership are: * Each partner is personally liable for all of the firms debts * Partnerships can only raise limited amounts of capitals as compared with businesses. * Decision- making can be show since all partners have to be consulted. * The death on retirement of a partner can bring a partnership to an end if such a rule is written into the deed of partnership. * Disagreements can arise between partners about the amount of effort that each of them puts in. ...read more.

Conclusion

These companies are allowed to raise capital by selling their share on the stock exchange. This gives them a greater flexibility in raising capital. They still only need two people to form a public limited company and there is no stated maximum number of shareholders. The advantages of a public limited company are: * Shareholders have limited liability * Suppliers tend to feel more comfortable trading with legally established organisations * It is easier to raise capital through shares * The ill health or death of shareholders does not affect the running of the business. The disadvantages of a public limited company are: * All the affairs of the company are made public through the audited accounts and annual returns that the company makes * Employees and shareholders are distanced from one another * Decisions tend to be slow since there are a number of people involved. Name of business The type of business Size Scale Tesco Public limited company Large business international Solicitor Partnership Small business local Mobile hairdressers Sole trader Small business local Northill stores Private limited company Small business local ?? ?? ?? ?? Nosheen Sadiq 9th October ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Marked by a teacher

    ASDA's Ownership

    4 star(s)

    * The war between Britain, America and Iraq These factors have hit retailers such as ASDA and Wines Plus as there has been a decline in the number of tourists that visit the U.K and the number of tourists has now declined to nearly 20%.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    The recession that started in 2008 was caused by many different factors. It is very difficult to pinpoint exactly what caused the economic downturn and most of the information you hear about how and why this happened is mainly a matter of opinion.

  1. Introduction to Business Assignment

    type of light bulbs they produced was high density discharge bulb which not to say were highly efficient light sources. To advance with regards to profitability levels, GE lighting being such innovative manufacturers came up with incandescent light bulbs which are warm, dimmable inexpensive light energy, Compact Fluorescent (CFL)

  2. Btec National Business Level 3 Year 1 - Exploring Business Activity

    Business purposes Reason why businesses exist Microsoft Corporation is an American multinational computer technology corporation with 79,000 employees in 102 countries and global annual revenue of US $51.12 billion as of 2007. It develops, manufactures, licenses and supports a wide range of software products for computing devices.

  1. Applied Business Studies Unit 1: Investigating Business

    Business focus is long term expansion based on controlled and profitable growth. Our Strategy Quality, speed to market and strong service back-up are key to Martin's success. Constant innovation of competitive products combined with a strong branding will ensure our leading position is maintained and extended in the Architectural and Entertainment divisions.

  2. Vodafone Plc

    This would help Vodafone to save time and get in contact with people more easily also it would help Vodafone not to waste time and also they would also not have to go and visit people. This could affect the communication because if an urgent message was to be said

  1. For my portfolio, I was asked to do an assignment on two businesses. I ...

    A private limited company like Vectone Gnanam Telecom issue shares to the owners. Each share represent a share of the company equals one vote therefore a shareholder with more than half of the shares could always outvote the other shareholders.

  2. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    ?To put our responsibilities to the communities we serve at the heart of what we do? because they?re not being responsible to their customers health because if Tesco?s is not promoting the healthy foods that they sell then less customers are going to purchase them so they would lose profits,

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work