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Why might the ownership need to change to respond to changing activities? And why might aims & objectives need to change also?

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Josh Moore

10vY                            3/11/2006

Why might the ownership need to change to respond to changing activities?  And why might aims & objectives need to change also?

  The ownership of Alnwick Castle Ventures is what’s known as a private limited company and also a limited liability company. Private limited company means that the shareholders can only be members of the founder’s family or close family friends. This type of ownership suits the owner of ACV who is The Duke of Northumberland he likes this type of ownership because it means that the business will stay in his family. Limited liability means that the company has borrowed money to start the business or to build a new attraction, in the case of AVC the dragon’s quest and the knight’s school but if the business was to go bankrupt the bank who loaned AVC the money cannot take the Duke’s personal possessions.

  Although this type of ownership suits the Duke, there are certain circumstances in which the type ownership of the business might have to change. The company might have to do what is known as floating the business which is where the business goes from being a private limited company to a public limited company which means anyone in the public can buy shares in the company which would mean the Duke would lose his control over the business. This situation might occur if the business went into serious financial difficulty or if the owner wants to share out the responsibility of the business. If the business goes public it means the owner will lose his control over the business although this would lose him control of the business it would mean that the partners in the business would be partly responsible. So if the business wanted to expand to an international company then the owner of a business might decide that he couldn’t deal with such a big step financially and mentally so he might need the help so he may float his business and begin to plan the expansion. This is and example of why changes in activities for a business and also prompt a change in ownership.

  Aims and objectives of businesses may also have to change in ways such as re-defining the aims or if an objective is met early making a new one in the extra time provided. Also aims and objectives might change for worse circumstances like if there isn’t enough money to meet either an aim or and objective then the objectives may change to become more achievable. Some businesses aim to expand their stores into other parts of Europe by the end of 2010 but if they achieve this by 2009 they could aim to build more or larger stores in Britain and Europe. So sometimes changes in the way things are going for a business depending on its success and failure it may have to re-evaluate its aims and objectives.

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