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P4 - Describe the legal and financial aspects that will affect the start up of a business

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Introduction

P4 - Describe the legal and financial aspects that will affect the start up of a business In this section I need to write a report of 2000 words about the legal and financial aspects that will affect the start up of a business. Legal status: Legal status means the concept of companies having a particular place in the market, from this as it determines the laws which affect them There are many types of businesses: sole trader, partnership, private limited company or franchise Sole trader: this involves one person who is the boss and the owner of the company and has unlimited liability and the examples are a builder, a window cleaner and painter etc. Partnership: This business contains tow or more people up to 20 the share between the partners doesn't have to be 50% it can be different share amounts partners also have a unlimited liability and some example are doctors, dentists and more. The partners must have a deed of partnership which is a contract between partners which legally binds them. The strength is that the partners well get the same percentage of profit as much as they have invested into the company. ...read more.

Middle

if a game is used and its only used for a week we still cant say that the item is new and must describe it as used. The other is customer protection act this will affect our business in a way that we have to make shore that the customers are buying the authentic goods so that they don't take us to court also we have to maintain the high standard of goods so that people don't consider us as ripping them off but we make a good reputation in society so that more and more people come to our shop this act is benefited to the customers as this gives them the right to investigate if the items and products bought are good or not. The last act that affects our business is the sales and supply of goods act this will affect us in a way that if the customers have and now that the items are in great condition and the items are genuine then the customers will come more often to our shop this act will allow our business to purchase great and excellent products to benefit the customers needs and improve our sales and customer relations. ...read more.

Conclusion

Coast of premises, equipment and supplies:- we would have to pay my bills and rent of the shop from the profit that we make and still have some money left over for ourselves and if possible than have some money to reinvest in my business. However these are not the only coasts that I have to consider I would also need to consider my employees because after all we would have to pay them their wages as well. Running costs:- We would need to have really good sales in order to make more money than our competitors so that money can be reinvested in the business in order to improve our business. Pricing policy:- It is important that we price our products fairly but it is also important that we are careful when pricing our products. And make sure that our prices are lower than our competitors but are high enough to make a profit out of. We would also have to make sure that if we decide to reduce our prices than the old price must be there for at least last 28 days. Source of finance:- We would take a loan from the bank and than repay it but at the same time we will also be investing in some money from our own personal accounts. ...read more.

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