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

Business Ownership Choices - 10 Mark Question

Extracts from this document...

Introduction

Transfer-Encoding: chunked Business Ownership 10 Mark Question (May 2012) Given Context: Orion Designs was established five year ago by Amita Patel and her friend, Yi Ling, after they both finished Art and Design courses. Orion Designs is run as a partnership between the two women. There are currently no other partners. Amita and Yi create hand drawn designs in their studio which is located on an industrial estate. These designs are then sent to another business where a computer is used to put the designs onto transfers. When Amita and Yi get these transfers back, they are put onto mugs and plates purchased from a separate pottery company. Orion Designs then sells the finished mugs and plates as souvenirs. Orion Designs has been making increased profits each year. ...read more.

Middle

Introduction: Amita and Yi are two friends who have a business that puts designs onto pottery. They are currently a partnership but are trying to work out whether they should change the ownership type of their business in order to expand. Paragraph 1 (Analysis of Option 1 and Option 2) The business is currently a partnership so Amita and Yi both have unlimited liability. This means they would have to sell their personal assets if the business went into debt. If they took option 1 this disadvantage would still remain. Option 1 is low risk as they are not doing anything different but it might be difficult for them to expand as they won?t have any additional finance. If they know people who want to join their business then they could take on additional partners, these would have unlimited liability as well. ...read more.

Conclusion

Conclusion At the moment there are only two partners, Amita and Yi so they will be limited in the amount of money they can invest but they can make all the decisions themselves. If it were to become a ltd then other shareholders would be able to make decisions and Amita and Yi would lose some control of their business. There are also legal formalities involves in becoming a ltd which would take time and cost money. In order to secure the future of the business and expand I recommend that Orion Designs takes option 2 and stays as a partnership but invites other partners to invest in the business. This way they get the advantage of more capital in the business but do not have to spend a lot of time and money becoming an ltd. ...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 People in Business 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 People in Business essays

  1. Classify the business according to its ownership - McDonalds

    They can achieve this by increasing the overall size of the business by merging or joining other firms of buying them out through a take-over. McDonald's recently went into a joint venture with pr�t a manager in order to enter another segment of the U.S market and gain a greater

  2. Report: Type of ownership of J-Sainsbury

    1975 was a big year because J-Sainsbury's opened a save centre, which was Britain's first specialist hypermarket company, founded as a joint venture with Bhs. That year J-Sainsbury's also opened their first petrol station at Coldhams Lane, Cambridge. In 1979 Homebase formed as a joint company (75%: 25%)

  1. GSCE Unit 2: People & Business

    if an employee had put some stock out on the shelf and hadn't finished and left the other stock lying around, then a cleaner would be called straight away to get rid of the mess and have it back to how it was to begin with in no time.

  2. business ownership and activity

    Dcorium provide some facility to increase its sells. For example It offers free wrapping paper when a customers buy gift from the shop so the customers don't have to worry about wrapping Decorium sells very unique gifts which they imports from Turkey.

  1. Detailed GMP inspection Report OnShetland SeaFish (Hull) Ltd.

    This has a knock on effect on staff morale and motivation if the annual increase is postponed or if it has to be cancelled. It manifests itself in some individuals in a revenge motivation mentality. As the individuals feel aggrieved because the company cannon comply with what the workers feel

  2. Introduction to how business works?

    Job Examples de. Financial manager: Overseas that all jobs are completed properly Accounts staff: Keep track of transactions within the accounts. Interaction Finance controls all money matters within the business, so it is important to be in close contact with other areas.

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