• 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)

    ASDA now, benefit from new job positions and services introduced into their stores. They include: * PIM officer - Profits Investment Manager * Bonus schemes * Smiles service * Electric scooters * Braille guns These are new services given by WAL-MART and have been passed onto ASDA and have helped them become more successful.

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

    Public sector companies struggle, as the government has to make cuts, the government have less tax income, and have to pay more out in state benefits and they also spent a huge amount of money bailing out the banks. Small businesses and start-up businesses will suffer a lot and will

  1. Introduction to Business Assignment

    mixed used schemes, including other elements such as leisure, offices and residential. JSD is looking for development opportunities in out-of-town, edge-of-town and town centre based locations throughout the UK. JSD has developed over 3.5 million sq feet of space in the past 9 years that it has been trading and

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

    It includes shop, pubs, inn, fast food, and supermarkets. My business belongs to both the secondary and tertiary sector. Tertiary sector includes business activities such as retailing, distribution and transport. Tesco provides their own transport to carry their goods. Tesco provide retail services they sell household items, food items, kids items, and food items.

  1. Vodafone Plc

    its commitment to the business which would help the business recruit a person who knows qualities about the business. This could affect the communication take interviewing a new employees as an example he/she would be aware for all the responsibilities and how to deal with any queries as he/she will be trained therefore this will affect the communication.

  2. Barclays Investigating a Business

    With unemployment low the economic conditions remain good and benefit Barclays immensely as there is a better cash flow throughout the country. Competition An Oligopoly is when a number of businesses specialise in the same market. Barclays in an Oligopoly as there are many banks competing to provide the same services such as savings accounts, retail management and loans.

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

    Private companies may be called corporations, limited liability companies, partnerships, sole proprietorships, business trusts, or other names, depending on where and how they are organized. Each of these categories may have additional requirements and restrictions that may impact income tax liabilities, governmental obligations, employee relations, marketing opportunities and other business decisions.

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

    their looks or by bribery ? this is considered to be unlawful. This can affect Tesco?s in achieving their aim ?to be the most highly valued business in the world? the reason why is because to be a highly valued business in the world you have to be highly valued

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