• 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

    not growing - indeed there are signs that it may be declining. As the market is not increasing the size, brewers of traditional ales can only increase sales by taking market share from competitors. Market share is also important for McDonald's because that considerably from producing on a large scale.

  2. Report: Type of ownership of J-Sainsbury

    In 1922 there was the incorporation of J-Sainsbury's Limited. In 1961 Sainsbury's was the first British food retailer to computerise stock control and ordering. There was floatation of J-Sainsbury's plc in 1973. Another branch was opened in 1974, but this was the first J-Sainsbury's edge-of-town store at Coldhams Lane, Cambridge.

  1. GSCE Unit 2: People & Business

    not like when people don't want to buy some merchandise because some of it has already been worn or it's made out of animal fur so they won't wear it. This is because they don't believe in killing animals for fur etc.

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

    The problem with this is that the company would like to have a secured amount of business from one of, or a combination of customers, in order to take on the risk of borrowing large amounts of money. The reason for this is that a company has to account for

  1. 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.

  2. Introduction to how business works?

    Finance supplies updated information to directors.! Contribution Finance helps provide a bigger profit by budgeting spending. This will make more money.; Production Production is responsible for the making of the products Activities Activities in production include: � Cutting � Tagging � Finishers � Packing Cutting The big roles of fabric are cut into shape using giant cutters.

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