A Disadvantages for Partnership have Unlimited Liability, profit will be shared between partners and each partners is responsible for partner’s debts
Public Limited Company is more commonly known as PLC, it is usually larger than private limited company as they’re on stock exchange.
A minimum investment of £50,000 is needed to start up this type of business.
Public limited company expanded their business by selling shares to the general public via the stock exchange.
A shareholder have Limited Liability, they are responsible for the payments but will not lose their personal Property.
Public limited company will also need to apply two documents called Memorandum of Association this will show:
- Company’s name
- Address
- Amount of capital to be raised
- Purpose of the Company
Articles of Association:
- Name of directors
- How profit is divided
- Rules for running the business
Rights of shareholders
Example for Public Limited Company-TESCO
230 High Road, South Tottenham N15 4AJ
This company have thirteen directors that run the business. Shareholders have limited liability, which mean the director is responsible for all debts. They raise money by selling shares to the public.
Advantage for Public Limited Company is they had Limited Liability, they raise large amount of money, and the business can be expanded if more shares been sold.
A disadvantage for Public Limited Company is that they must provide legal documents. The business can be expensive and that the capital investment should be at least £50,000
Private Limited Company is commonly known as LTD, they are smaller company and often runs by family and friends. It tends to be a Small company but could also be a bigger size company
The directors control Private Limited Company, which means they are responsible for running of the business.
Shareholders have Limited Liability if the business failed; shareholders will lose the amount of money they invested but will not lose their personal assets.
Two legal documents must be provided, which is Memorandum of Association ad Articles of Association
Example for Private Limited Company- OPTIQUE
Wood Green shopping City, Unit 104, LONDON N22 6YD
There are two directors in this business, they have unlimited liability, directors responsible for debts
They sell goods such as glasses, contact lenses and treatment to raise money. And there are only two shareholders.
There are two document is needed to start up this business. Memorandum of Association and Articles of Association
An advantage for Private limited company is that they raise money easily. Shareholders had Limited Liability and the business will continue if one of the member dies.
A Disadvantage for Private limited company is that the cost to set up this type of business is a lot. Profits have to be shared amongst the members; it cannot be advertise shares in public and disagreement amongst the shareholders.
Map of Wood Green
The map shown above is a map of how to get to Wood Green. And I got this image in the Internet Search for Wood green Map
Mc Donald is a franchising; it gives permission to anyone who wants to set up franchise under his or her name.
Franchise is fast, effective and could also expand a business if it succeeds.
Example of a Franchise –MC Donald
500-508 High Road LONDON N17 5NN
Mc Donald Has only 1 owner in this business, It depends if they agree or disagree with the policy or not. They Raise money by Selling products, service to shareholders
Before setting up MC Donald, Licence is needed to sell the rights of its products.
Advantages for Franchise is that they have good advice and support by the franchiser’s research. Expanded easily as more products have been sold.
A Disadvantage for Franchise is that they have less independent. They are never on their own. Licence must be provided. And the rule must be follow, as they have to do the same ting as other Mc Donald does
I have produced this table showing all different types of business that is Sole trader
This is another graph that I have done for my Survey
Here a pie chart showing numbers of business I have interviewed
Michael Marks arrived in the north of England in 1881 as a Jewish immigrant from Russia. He started off as a hawker (a person who sells from door to door), going around mining villages selling buttons, needles, ribbons and other small items. He adopted a slogan, which he tied on his tray: ‘Don’t ask the price, it’s a penny.’ He used this slogan to avoid complications, as he could not speak much English.
The business quickly grew and soon Marks was able to afford a stall at Leeds market. As this brought in profits, Marks started to hire stalls at different markets. He decided that to become more successful, he would have to find a partner. In 1894 he became a partner with Tom Spencer. Spencer put in £300 to become a partner.
Soon they had 24 market stalls and 12 shops. They each began to specialise in different jobs. Spencer would mainly work at the warehouse and organise administration. Marks specialised in buying goods and looking for new places from which to sell. Their shops were all ‘penny bazaars’.
Unfortunately, Spencer became an alcoholic and less reliable. The partners decided to form the business into a private company with themselves as the major shareholders. Marks stayed with the business, while Spencer left to run a chicken farm. Marks were, therefore, an executive director and ran the company, while Spencer remained a non-executive director.
Michael Marks and Tom Spencer died and Michael’s son Simon and his boyhood friend Israel Sieff began to play an important part in running the company. Simon married Israel’s sister, and Israel married Simon’s sister.
In the early 1920s, Simon Marks went to America to learn about retailing. On his return he decided to change the company image, giving it a more up-market look, and to expand by opening a whole chain of stores. Instead of buying from wholesalers, he also started buying in bulk from manufacturers, who gave him a discount.
To raise the capital for doing this Marks & Spencer became a public company with shares quoted on the Stock Exchange. From here, the company grew to its present size and developed the image and reputation that it enjoys to this day. There are now a large number of shareholders and a board of directors controls the company.
The reason why I put Mark and Spencer on this page is because I think it’s better if I talk about the assignment first and then going into talking about the history of Mark and Spencer of how their business start.
A table showing the four stages in the growth of Marks & Spencer
During this assignment I have done some research about different types of business. I have looked through texts book and Internet, which I found is helpful.
A lot of business books have different meaning, so I think it’s a good idea that I go to the library and look for all type of business books.
I have produced table of what source I have used in my research.
