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Assignment to investigate two types of business organisations - Sole traders and partnerships.

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Introduction

Assignment to investigate two types of business organisations Contents Page 3: Introduction Page 4: Sole traders Page 5: Sole traders Page 6: Partnerships Page 7: Partnerships Page 8: Partnerships Page 9: Questionnaire-Sole trader Page 10: Questionnaire-Sole trader Page 11: Questionnaire-Partnership Page 12: Questionnaire-Partnership Page 13: Conclusion Page 14: Code breakers! Page 15: Bibliography Introduction: In this assignment I shall be discussing my views on two different types of businesses. The businesses that will be discussed are a sole trader and a partnership. I have chosen two separate businesses, which are both located outside the borough of Enfield. The first is a Sole Trader, 'Mario's Barbers'. The owner of the business is Mario Poliviou he is the employer of my brother-in-law Vas Demetri, so when I asked Vas about what kind of business I should report about he simply replied, "why not a barber". Mario was very helpful considering his shop is located in the heart of Watford. I spent about 15 minutes talking to Mario where he provided me with some valuable information. For the partnership I decided to question my dads bosses because there close to the family. My dad, George Matheou, took me to his workplace a week ago. I had to take my Saturday off to travel up to the "West Point Hotel" which is located in the West End near Hyde Park and Madame Tussauds. The hotel is still being built up as we speak. ...read more.

Middle

In other words, a partnership means: * Shared ownership. * Shared decision making. * A shared workload. * Shared profit. * Shared liability for debts. A partnership is almost as easy to set up as a sole trader. If no formal agreement is drawn up, then the rules of the partnership are as laid down in the 1980 Partnership Act. It is however, wise for the partners to draw up a special document, the deed of partnership Agreement, which outlines in detail: * How profits and losses are to be shared, if not equally. * How much money each partner is expected to put into the business. * How much money and what share of the profit each partner will be allowed to take out of the business. * The working arrangements of the partnership e.g. who does what in the business. * Arrangements for removing a partner or adding a partner to a business. * Arrangements for ending the partnership and the distribution of assets once the partnership is dissolved. The main aims of the business are likely to be similar to those of the sole proprietor. Profits, survival and stability top the list of aims in this case, or if the company wish to grow, expansion may also be one. A partnership is easier to expand than a sole trader because of the involvement of more than one person, meaning more than one source of personal finance. ...read more.

Conclusion

In my opinion, although Sole Traders are convenient to set up, I would go for forming a partnership simply because of the Deed of Partnership. I think this was a great idea because it's a way of saying that you as an individual have rules and boundaries and most importantly you shall stick to them. A sole trader should also have a kind of deed with himself! That's right himself so he/she can see it on there wall encouraging the person to work harder, and the witnesses should be the public so they can see if he/she is sticking to it. Code breakers! Sole proprietor: a one person business, the same as a sole trader or sole owner Unlimited liability: responsibility for the debts of the business extends to a person's personal wealth. Specialisation: concentrating on a particular task or job, being expert at it. Division of labour: splitting up the labour force into different specialisms so that each carries out his or her own specialism with greater efficiency. VAT threshold: the level of turnover at which the firm has to start paying value added tax. Delegation: giving jobs to other people, in a partnership this means that people use their skills where they will have the most effect. Deed of Partnership: a legal document that outlines how responsibilities, profits and workload are to be shared. Lack of continuity: because the partners make up the partnership, if one of them leaves, then the partnership is dissolved. The Partnership cannot be passed on or sold. ...read more.

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