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Ownership. Privately Owned Businesses are owned by private individuals (One or more). Privately owned businesses are: Sole Trader

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Introduction

Ownership In the UK, there are two types of owned businesses. There are privately and public. Privately Owned Businesses are owned by private individuals (One or more). Privately owned businesses are: Sole Trader Sole Traders are owned by own person. They are small simple businesses. A sole trader is an unlimited company as single owner has full responsibility. An example of a sole trader would be trades people or independent shops. Being a sole trader, it is easy to set up. The single owner will have full control as he/she is independent, who can decide their work hours, making it flexible. They can make quick personal decisions and can be put into effect rapidly. Having full control they have minimum paperwork. Being a single owner they would have to find their sources of finance personally making it more difficult. They would have to consider loans, grants, and owner's capital or saved profit. Disadvantages of being a sole trader would be long working hours and few holidays, which they would loose money if they took a holiday as they wouldn't be selling their product or service. If the owner was Ill or sick it could cause closure and money loss. The Business would be at risk if the owner injured themselves or passed away. They are unlimited liability, which means if the owner went into debt, he/she is at risk to loosing their personal belongings. ...read more.

Middle

Their personal belongings wouldn't be at risk. Being an LTD, you are usually trusted by the general public than a sole trader or partnership. Typical Objectives for an LTD is to make profit, expand and to sell shares. Disadvantages in being an LTD is you cannot sell shares to the general public, only to your family/group. Being an LTD you have more agreements and regulations to agree with. If the LTD goes into debt, the company goes into liquidation. Public Limited Company Public limited company is known as PLC. A PLC are very large companies. An example of a PLC is Tesco. Capital made by the company is made by making a profit and mainly selling shares on the stock exchange. A PLC can sell shares to the general public unlike an LTD. To become a PLC the company must have more than �50,000 and must have a satisfactory financial track record. Also there must be a number of people interested in buying shares for it, to have a successful flotation. A PLC must have a minimum of two directors and two shareholders. The directors control the business and the shareholders own the business. A money saving advantage in being a PLC is that because they are so big, they can order products from the supplier cheaper as they can buy in bulk. ...read more.

Conclusion

Only the Franchisor products can be sold. If the main franchisor fails, then the franchisee will also suffer. Non-Profitable Businesses Non-Profitable businesses mean what they are. They don't make a profit. If they do, they put it back into the business. Many charity based business organisations are run as 'not for profit' operations. They typically receive donations or funs from groups or government. These can either be big or small businesses. They usually care for the environment e.g. Red Cross. The ownership of the business is a trust. The idea of this type of business is to raise money. Their typical objectives are fund raising, break even and help the community. This type of business employs voluntary employees. Co-Operatives Co-operatives are companies that are owned by a group of people (members) who have shares in the company. Shares can start as little as �1 and each member has a share in the Co-operative. It is the members (shareholders) who finance the co-operative and they control on how the business and profits are run. They may have limited liability. Tesco being a PLC Tesco is a PLC. The reason is, is because it is a massive nationwide business who sell shares on the stock market to gain profits. In June 04, Tesco is giving more than 160,000 of its workers company shares worth �63m. Tesco chief executive Sir Terry Leahy said the giveaway was a "thank you" gift for employees. Here is a copy of the current Tesco Share Values: This is showing the share Prices have slightly dropped. ...read more.

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