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

Classify the business according to its ownership, and explain the benefits and constraints of this type of ownership.

Extracts from this document...

Introduction

Classify the business according to its ownership, and explain the benefits and constraints of this type of ownership. British airways is a Plc (Public Limited Company), which is incorporated, other types of business are Ltd (Private Limited Company), which is also incorporated. There is also unincorporated business, which are a sole traders and partnerships. Unincorporated businesses: An unincorporated business has unlimited liability and the owners are the business, Which means in law an unincorporated business is libel for all of its debts and is personally responsible for repaying those debts. Sole traders: A sole trader is an individual trading in his or her name, or under a suitable trading name. Advantages are: You are your own boss which gives you freedom, there are no legal formalities required before you can start which makes it simple, there is less form filling and there are no legal costs i.e. ...read more.

Middle

Advantages are: there are more possible sources of capital then if you were a sole trader as there are more people to contribute money, they could have a wider range of expertise as different people can specialise on different aspects of the business, there are people to cover for you if you're sick and unlike a limited company a partnership doesn't have to make its accounts available to the public. Disadvantages are: limited liability which means that each partner is liable for a debt and disagreements can occur between partners which could break up the business. Some examples of Partnerships are: Firms of solicitors, accountants and architects. Incorporated business: An incorporated business has limited liability and the owners are separate from the business, which means that if the business was to go into debt ...read more.

Conclusion

In a Plc the shareholders have a say in what goes on the business. Advantages are: limited liability, Huge amounts of money is raised from sale of shares, production costs are lower due to economies of scale and because they are so big they can dominate the market. Disadvantages are: anyone can buy a share in the business, there not able to deal with customers at a personal level due to there size, the way they operate is controlled by various company acts to protect shareholders, there may be a divorce of ownership and control which might lead to the interests of shareholders being ignored and they can be inflexible due to size as well. Some examples of Plc are: large companies such as ICT, Tesco, British steel and of course British Airways. Gary Harrison ...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. British Airways ownership. British Airways is a public limited company, which means that ...

    There are also many conflicts between shareholders and the board directors. Public limited companies can also become too large resulting in poor labour relations. * The disadvantages are it is Costly and complicated to set up as a plc - you need to employee specialist bankers and lawyers to help organise British Airways converting to the plc.

  2. Business Studies Edexcel Coursework

    posting them in letterboxes around the neighbourhood, or at shopping centre car parks, etc. Nevertheless, despite the professional information included on the card, Errol must make sure the actual card is high-quality, printed out on a quality printer. Faded business cards printed from Economical printers on children's drawing card would not set an ideal image to potential customers for Errol.

  1. The type of ownership Cadbury Schweppes PLC.

    * Generally, only a small amount of capital needs to be invested, which reduces the initial start-up cost. * The wage bill will usually be low, because there was no employees but John did receive some help from his family.

  2. Type of Business Ownership, sectors, types of bysiness and size of business

    All profits generated by the business belong to the sole trader, but at the same time any losses are also their responsibility. A sole trader has unlimited liability, should be business fail and be unable to pay its debts, the personal assets of the sole trader are then at risk.

  1. In this section I will explain every one the different types of business ownership. ...

    - Greater need to conform to legal procedures. Franchise A franchise is an agreement or license between two parties which gives a person or group of people (the franchisee) the rights to market a product or service using the trademark of another business (the franchisor). The franchisee has the rights to market the product or service using the operating methods of the franchisor.

  2. Business Studies

    * Comparison of debt and equity financing, including costs and benefits, risks, gearing/leverage Comparison of debt and equity finance Type of finance Costs Obligations and risks Advantages and benefits Debt * interest - variable * fees * legal charges * Repayments must be made on the due date even if

  1. Exmaining different types of business ownership with examples of each.

    - fails to continue when owner dies- this means that they have to be completely devoted to the business - they often can't have holidays or have breaks and often when the owner dies and no-one wants to take over the business, Radiant hair and beauty would not continue.

  2. Investigating Business - Ownership

    Errol's business is called and is known as Errol Anderson Motors. Sole-Trader is someone who does a one-person business according to my assignment that one businessman is Errol. This is the simplest form of ownership in which the owner in this case who is Errol is fully controller of his business.

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