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

business studies coursework

Extracts from this document...

Introduction

Business Studies Coursework 2 Legal Structure of the Business When setting up a business a person has to decide on which type of business the organization should take. This decision depends on various factors like how many people are going to own the business, what risks the owner is prepared to make, and weather it will be a limited or unlimited company etc... There are six types of businesses, which an organization can take. These are: 1. Sole proprietor 2. Partnerships 3. Franchise 4. Multinational/Conglomerate 5. Limited Companies - PLC`s 6. - LTD`s 1. Sole proprietor: A sole proprietor is a business owned by a person alone. This person keeps all the profits of the business but has unlimited liability. This means that the owner has to pay for any debts of the business, even if he has to sell his house and other valuable personal possessions. A sole trader is also a tertiary business. The Advantages: * A sole trader can set up in business immediately. There are very few complicated forms to fill in or procedures to set up. * The owner is in sole charge and doesn't need to get the agreement of other owners to make changes to the business. Lawyers and accountants don't have to be employed. * The owner can make all the decisions by himself without having to get the agreement of partners, directors and managers of the business. * The amount of money needed to set up a sole proprietor is as little as �1. ...read more.

Middle

4. Multinational/Conglomerate: A multinational is a large company, which operates and sells products and services in more than one country. A conglomerate is a company, which makes and sells different products and services. Advantages: * More customers in different countries. * They receive additional profits. * Have local subsidiaries. * Have local knowledge. * More range of product to sell for a conglomerate no risk of failure is reduced. Disadvantages: * The distribution of stock can become difficult. * Controlling the subsidiaries is hard and costly. * Communication and translation is hard. * Workers might be cheap to employ but local customers may not be able to afford the service. * Taxation and protection to stop multinationals from selling to many products so making local producers lose out. 5. Limited companies: Most limited companies have two or more owners. The owners are all called shareholders. This is how the ownership of the company is decided. Limited companies are usually family owned businesses. They have limited liability this means that if the company goes out of business leaving debts the shareholders will only lose the money they have put into the company and they won't be forced to sell off there personal possessions. The more shares a person owns the more say they have in how the company is run. If a shareholder decides to sell off his share he needs to get permission from all other shareholders. Any financial accounts are not private and have to be published. ...read more.

Conclusion

2. There may not be anyone who will carry on managing my business after I retire. I have spoken to family relatives who were interested in taking over the business in a few years. If this plan falls through I will then try to sell my business. 3. If I become ill for a long period of time my business may suffer. As this is highly unlikely to happen to me within the next 20 years, as I am still young I am not worried. If so I have a supportive family who I know would be willing to help me out. 4. A lot of sole traders tend to have very long hours in my case I plan to employ an assistant who will be able to help me out, which will reduce the work load. 5. I may have problems raising starting up capital. This should not be a problem, as I don't expect my business to require a lot of money. 6. I will require products in order for my business to run and the cost of buying products can become expensive therefore I will order in bulk which will reduce costs. 7. As a sole trader I may have to do other jobs like accountancy. This fact does not bother me, as I don't mind diversification. I have to take each disadvantage into consideration and I have tried to make them least inconvenient as possible. Overall I think being a sole trader will be to my advantage, as the advantages will help me gain from my business. ?? ?? ?? ?? ...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. IGCSE Businesses Studies Revision Notes

    time - The margin of time between ordering and obtaining stock Lean production- Techniques used by businesses to improve efficiency by cutting down on waste: Kaizen- Means 'continuous improvement', focuses on eliminating waste through organizing JIT- Just-In-Time; Involves eliminating stock levels through correct timing, reduces storage space Cell production- Separating

  2. Business Studies Edexcel Coursework

    * Labour - At first, Errol's business would almost certainly be fine without any labour, since he is a small business - not to mention his tight funds for financing the start-up of the business, let alone labour! * Customers - without them, the business will fail.

  1. Business Studies

    and influence; > How much power a manager has depends on; the personality of the leader, the characteristics of the subordinate and the environmental situation > A decision that doesn't involve consultation is unlikely to be successful Managers have power; > Legitimate power: right of a manager in a particular position.

  2. Compare and Contrast a set of Final Accounts for a Sole Trader and a ...

    increasing the amount of capital the owner has invested in the business, where as the accumulated fund is not for any one person, it is there to prove if the club has made enough profit to break even, and to show how much it is worth.

  1. English for business

    should be aware of may be "expect the unexpected" and "be yourself". In different countries, different trades and different grades, the salary that goes with a job may be only part of the package: perks like a company car or cheap housing loans, bonuses paid, company pension schemes, generous holidays,

  2. Types of business ownership, starting a business, multinationals.

    needs to work long hours 3. Lack of continuity Business cannot open if the owner is ill or wants to take a holiday 4. Lack of capital Problem of money if the owner wants to expand - banks are reluctant to give loans to sole traders since they often do not repay the loan - end

  1. OCR Nationals Award Business Studies - Task 1

    given out between each partner may vary because of how much they might have contributed to the business. > Each partner is responsible for their own share in the business, meaning they are also responsible for their debts. > As there are individuals who are working together there could be conflicts between what decision should be made.

  2. Business Studies- Unit 1- Business Ownership

    The franchisor of a business may choose to change from a franchise to a ltd company because the franchisor may think that he/she is losing a lot of profit capital paying franchisees for running the franchises of his/hers business. Another reason may be that the franchisees of his/her business are

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