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business ownership and location

Extracts from this document...

Introduction

Business ownership and location Introduction Ownership There are 6 different types of business ownerships. Each of the ownerships has different advantages and disadvantages to the owners. The type of ownership may change as a business grows and develops. The 6 different types of ownerships are: * Sole owner * Partnership * Public Limited Company (PLC) * Private Limited Company (LTD) * Franchise * Co operative Below is a table showing the strengths and weaknesses of the 6 focal business ownership. Ownership Advantages Disadvantages Sole Trader A sole trader is 1 person who runs the company and is liable of all the loss and profits. * Make all decisions. * Takes all the profits. * Flexibility. * Easy to set up. * Liable for all debts and loss. * No holidays & Long hours of work. * Limited access to money. * Pressure of being a single person. Partnership A partnership is a group of people usually 2-20 people maximum. Liable to all debts and debts are paid by all partners. * Access to more money. * Shared responsibility. * Easy to set up. * Unlimited liability. * Partnership dissolves after. Death of a partner. * Conflict could arise. * All partners are liable for debt and loss. Private Limited Company A form of business which is run within a family. Shares cannot be bought and sold on the stock exchange. * Decisions within the family * Limited liability. * More access to money. * Shared between families. * The company can be sued. * More complex to set up. * Minimum share capital of �50,000 Public Limited Company A business where shares in a company can be bought and sold over the stock exchange. * Limited liability. * Only lose the money invested. * Range of companies. * Share value may change, affects company value. * can be large, complex, possess market power Franchise Franchise is a company name bought. E.g. McDonalds. The rules and regulations of the company have to be accepted. ...read more.

Middle

Figure 1 is the kind of certificate eWave will receive. This certifies that eWave is a limited company with limited liabilities. When eWave turn to a limited company they will need to publish their annual account to the company's house. These accounts will be open for inspection by anyone interested in your financial standing. The advantage is that all shareholders will benefit from limited liability for debts incurred. This means that, should eWave business get into difficulties financially, the shareholders would only stand to lose what they originally invested; this is a major advantage for you as it would help to attract more investors. Ownership of J Sainsbury's As I am studying Sainsbury for my second business. I will also have to analyse their ownership and location. I will keep in mind that there will be a significant difference as Sainsbury is a PLC and eWave is a small partnership firm. Sainsbury's started their business campaign as a partnership. Obviously as the business grew the ownership changed. It changed from being a partnership to a private limited company Ltd to then finally a public limited company Plc. Today J Sainsbury's is a worldwide supermarket and serve over 11million customers per week this type of success cannot all be handled by a sole owner as there are over 460 stores in the UK there is too much liability involved. Currently Sainsbury's is a Plc (public limited company). A public limited company is a business where shares in a company can be bought and sold over the stock exchange. This applies to Sainsbury's. A Plc has limited liabilities this means that if the renowned firm Sainsbury's get bankrupt the company will loose the assets and the money that has been initially invested in the business. The public are able to buy and sell share. In a business when shares are bought one share is equal to one vote. ...read more.

Conclusion

This means that they will have to make sure their distribution depots deliver products which are in good condition and are not out of date. An aim of Sainsbury's was to provide high quality food unlike other stores who only care about the price. Fruits, vegetables and other products which do not stay fresh for a long period are stored in distribution depots which are very close to the store. This is so that by the time the goods are delivered to the store they are fresh enough to consume and should satisfy the customers. If they are located far away than the products will rot away before they even reach the store which means that Sainsbury's will not be able to fulfil their aims of providing high quality food. Figure 17-Fruits in the store Reasons for change in location Many Plc businesses including Sainsbury's started their thrive in the business world in the central business district (CBD). As time moved on companies moved on as well. They moved to areas in central London and around the country. The reason behind the move is that the firm will be able to make more money and expand. Figure 20- This diagram shows how a business changes location from a city centre and then to its surrounding areas. A further reason why Sainsbury's decided to change location to the suburbs was due to the price of land. The city had a high reputation than the suburbs. This is why most businesses started of as corner shops. And as they got more successful they established them selves. One other reason why Sainsbury's located itself in the suburbs was because there was large amount of land which was unused. The unused lands were mainly docklands which were operating during WW2, but after the war the businesses had moved elsewhere and the land was useless. Sainsbury's noticed this and used it as an advantage to build their branches there and expand the business if it was successful. ?? ?? ?? ?? Page 1 of 6 ...read more.

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