Chester zoo. A charity is an organisation that uses the profit for the public good and not for individual people

* This will improve the organisation reputation in that the public will see the company as reputable.

The liability of a sole trader are that if the business goes into debt it has to be paid this means that all the sole traders personal assets e.g. house and car etc will be included in repaying the debt.

The disadvantages of a charity:

* They have to comply with the charities legislation.

* Most charities are subject to the jurisdiction of the Charity Commission. The Charity Commission can institute formal enquiries in cases of misconduct / mismanagement and they can remove or replace the trustees.

* The charity trustees may not benefit financially from the charity.

* Personal liability of charity trustees for misuse of funds.

Location

Chester zoos location is very important because the organisation started by George Mottershead who opened it as a sole trader. The location is important because it has to have easy access for the public. Chester zoo is easy to get to by cars because it is close to the motorway. It is easy to get the by train because the station is only 2 miles away from the zoo so you can take a taxi there from the station or take a bus or the customers can walk it to Chester zoo.

The factors that Chester zoo had to decide are:

* Space is very important because they have elephants, tiger, chimpanzees and other animals so this was very important because the animals need the space to exercise keep healthy also the amount of visitors that would come to Chester zoo so they would have to make space for the animal but also for the people that are going to visit. So this is very important to Chester zoo because if the zoo was small the people would not want to see the animals in that state and it is also important because it was George Mottershead dream to have a zoo without bars

* Easy access is very important because if it was hard to get to no one would wants to go because it took too long or they don't have a car so it is in easy access of the motorway and the train station were the zoo is only 2 miles away so you can walk there, take a bus or take a taxi.

* The cost of the site and other things as labour because it is important to have cheap land so that you can build a expensive zoo also you will need money to pay for the labour of the employees.

McDonalds

In 1940 McDonalds opened as a new business the company was run as a partnership between the McDonalds brothers.

In 1953 the first McDonalds franchise opened.

Partnership

A partnership is when two or more people open up a business.

The advantages of a partnership:

* there is a shared responsibility which will lessen the workload of the business

* Easier to raise capital because of more people.

* Less pressure of time to complete work because of the workload being split.

* There is someone that you can consult with in the business on decisions.

The disadvantages of a partnership:

* The shared responsibility because of the less time to worry about the work may not be done.

* Disputes can arise on how much a partner contributes to the business.

* The distribution of money can arise even though there is a deed of partnership that tells how much someone gets but if someone does not do enough work you will feel dissatisfied.

Partnership

a partnership has unlimited liability just like a sole trader this means the partners are liable for all the debt that the company owns and it will be payout of there own personal assets

A partnerships has unlimited liability this means that the owners are liable for the companies debts.

Franchise agreement

A franchise agreement is a legal document between the franchisor and the franchisee of what is expected from both parties such as McDonalds allows the franchisor to use there brand name and the franchisee has to pay for it out of its profits as well as annual fees.

The advantages of franchising:

* Starting a business with a proven trademark.

* Franchisors can quickly spread.

* Free training by franchisor.

The disadvantages of franchises:

* Loss of control if you want to change something you will have to get permission from the franchisor.

* It is expensive the franchisor will get an annual fees but also part of your profits.

* The relationship between franchisee and franchisor can easily cause conflict if the one of them is incompetent.

Franchises have been important to McDonalds because they exploited there popularity so that people will want to use there brand name and buy franchises so McDonalds would make money without having to pay the start up fees or running fees and because of their popularity 70% of McDonalds are franchises.

Limited companies

The ownership of a limited company is that it is divided up into parts called shares and whoever owns one or more shares is called a share holder. There are two types of limited company first is private limited company and the second is public limited.

Public limited companies PLC

A public limited company can sell their shares on the stock market.

Advantages of public limited company:

* Raise large capital in shares

* Benefits from the economy such as bulk buying and less borrowing

* Produce goods at lower unit costs

The disadvantage of public limited companies:

* Become too large resulting in poor labour relations

* Conflict of interest between shareholders and the Board of Directors.

* Easy to takeover because anyone can buy shares

A public limited company has limited liability this means that the share holder only have to pay the amount that they invested in the business this means that there personal assets are protected but the money invested are gone.

Private limited companies LTD

A private limited company can not sell their shares on the stock market but the shareholders have to decide who to sell them to.

The advantages of a private limited company:

* Easy and inexpensive to set up

* The owners are the ones with the most shares

* Less shareholder so decisions can be taken faster

The disadvantage of a private limited company:

* Lack of capital because shares cant be sold on the stock market

* No benefits from economy

A private limited company has limited that the share holder only have to pay the amount that they invested in the business this means that there personal assets are protected but the money invested is gone.

Location

McDonalds are in the tertiary sectors this is because McDonalds distribute food the costs around McDonalds in their market as fast foods are:

Fixed costs

The cost of site

Does the area have an availability of grants

The cost of loans that they have taken out

The cost of utilities such as gas, water and electricity

The cost of staff with a fixed wage

Start up

The cost of petrol that deliver the raw material

The cost of raw materials

McDonalds have to choose a place with lots of people because they sell food the places that are very good for McDonalds are in shopping centers because lots of people go there to shop or somewhere near transport links such as a motorway. McDonalds needs to think about the impact of the area will there be enough customers such as people who are in cars or people not in cars. Is there easy access for the customers? Will there be opportunities for expansion and is there any competition in the area.