• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

business Different type of ownership of a business

Extracts from this document...

Introduction

Business Ownership Sole Trader Main Features * A sole trader is somebody who owns and controls his/her own business. * Sole traders have unlimited liability. * They may employ people to help them at work but they have sole responsibility of the business. Advantages * The sole trader does not have to ask anyone for permission - they can make their own decisions. * The sole trader does not have to share any of the profits that the business makes. * The sole trader will always know what is happening in the business as they make all the decisions. * Control of the business cannot be lost. * It is easy for a sole trader to set up their business. * Little capital is needed to set up a sole trader. ...read more.

Middle

Advantages * As there is more than one person in a partnership, responsibility, stress and pressure can be shared. * Also as there are more people there are more ideas that can be shared. * Some partners may be better at one job than another - everyone can specialise in a particular area. Disadvantages * People argue. Disagreements may cause friction within the business. * Partners have unlimited liability, so partners may be less willing to invest. * The legal documents that have to be drawn up can take time to complete. CDs World This business is a partnership and also limited liability. The reason is partnership is because we can put all the money and make the shop better and partnerships is between 2-20 and limited liability is because when some this happen to the shop I do not lose my house or anything. ...read more.

Conclusion

This restricts the amount of capital that can be raised. The public can inspect financial information filed by the registrar. Sneaky competitors may use this to their advantage. Public Limited Company Public Limited Company * These companies have plc after their name, for example Marks and Spencer Plc. * Shares can be bought and sold by members of the public on the stock market. * The price of shares varies. If the business is doing well then the shares will be more expensive than if the business is doing badly. Advantages * Because shares can be bought and sold by members of the public, a plc can raise capital easily. * All shareholders have limited liability. Disadvantages * Because shareholders of a plc are members of the public, control of the business can be lost if someone buys a great number of shares. * Shareholders often don't know each other shareholders may feel isolated. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity 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 GCSE Business, Companies and Organisation, Activity essays

  1. Business Studies Edexcel Coursework

    Improvements: Looking at the advert, I think more detail might be required about the services; things such as highlighting the product range in his auto-parts shop, so customers would be given a general idea of what Errol has to offer.

  2. Business Studies

    deposited into the overdraft account to reduce the amount owing Effective financial planning * Effective cash flow management - Cash flow statements - Management strategies, distribution of payments, discounts for early payments > A business must always have enough finance to pay bills eg)

  1. The type of ownership Cadbury Schweppes PLC.

    * Privacy is maintained as financial details do not have to be published. * Due to the small size of the business, John could put forward a personal service to their customers. Disadvantages: * John had no one to share the responsibility of running the business with.

  2. "Moving Mountains at Marks and Spencer"

    Marks and Spencer and customers. "In the past, if a shop had run out of something I needed, I thought it was my fault for getting there too late. Now I'm not so tolerant. I expect stores to rearrange themselves so they're always ready for me" [Marks and Spencer Customer,

  1. In this section I will explain every one the different types of business ownership. ...

    This means agreements and contracts can be taken out in the name of the company rather than the name of individual trustee(s). Advantages of being a Charity limited by guarantee: - Do not normally have to pay income/corporation tax (in the case of some types of income), capital gains tax,

  2. Business Studies(Setting up your own business)

    sources of finance * This usually involves hard work and long hours * Unlimited liability for the owner. Advantages of a Partnership are: * If one partner is absent then the remaining partners can cover for them * Have more access to funds because there are more owners to contribute

  1. Importance of Human Resources Management

    There are many benefits to the Ford employees if they are asked to self-evaluate and check their own performance. > Clear motivation for the employees by taking much more responsibilities. > Employees gain greater understanding of their work than the external appraiser may have, where they also get a chance

  2. English for business

    Asking questions is something people have to do a lot in business. Decide what the questions are that led to each of these answers : 1.Yes, thanks I had a very good flight. 2.I'd like to see Mr. Barry if he's in the office.

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