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Different types of ownership

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CHAPTER 1: DIFFERENT TYPES OF OWNERSHIP 1.1 Sole trader A sole trader is the simplest form of business organisation. There is one owner, who has complete control over the decision making and running of the business. While many sole traders are indeed people working on their own, a sole trader can employ others to help run the business. Since a sole trader business in unincorporated, any people working in the business, apart from the owner, are actually employed by the owner. Setting up as a sole trader is very easy, as there are few legal formalities to go through. The sole trader must tell the Inland Revenue that he or she has set up a business and is self-employed. Details of any profit or loss made by the sole trader during the financial year must be given to the Inland Revenue annually, together with balance sheet, if there is one. This is so that the Inland Revenue can charge income tax on the sole trader's profits, adjusted by certain items. A sole trader must also keep employment records in respect of any employees. Any business name used by the sole trader has to comply with the Business Names Act 1985. This allows a business to trade under any name, as long as the name is not intended to mislead customers into thinking that it has a connection with any other business or government department if not such connection exists. ...read more.


The tertiary sector is the fasted growing and most diverse sector of the UK economy. Employment in the tertiary sector is growing, in some areas, however, notably in banking and public administration, increased efficiency and productivity resulting from the introduction of new technology has led to reductions in employment. Overall growth in areas such as banking, insurance and other financial services, business consultancy, leisure and tourism and health services is expected to continue for the foreseeable future. 2.2 Trends of Warenhuis 1001 In Warenhuis 1001 you don't really see trends, they do get new articles, but they don't change their assortment if a competitor does so. There is not much competition between different shops, simply because they are the only department store in this area. There are only some shops in Delfzijl and Hogezand, but usually regular customers keep coming to Warenhuis 1001. If you look at the last 10 years, the assortment of Warenhuis 1001 did change. The assortment has modernized, because customers are more sensitive for trends, such as different colours. For example, 10 years ago you could purchase 2 ashtrays; in black and white. Now you need to have yellow, bleu, red, green, orange etc. Also customers are more price-conscious, Warenhuis 1001 has to adapt to that. Warenhuis 1001 can survive the different requests of their customers. They have just started a new collection; clothing. ...read more.


Therefore they have the same stakeholders. - Customers: customers have interest in the shops because they want quality of product and value for their money. The customers influence the shops because they can take their custom to competitors, thereby reducing the sales revenue. - Employees: employees want good working conditions, including pay, job satisfaction career and personal development. The employees influence the shops because dissatisfied employees may not work efficiently - or not at all if they go on strike, or leave to work elsewhere. - The local community: the local community have interest in the shops because of the effect on employment of business cutbacks or closures. Also environmental and nuisance matters, such as pollution, noise, vehicle damage to property, destruction of the environment and so on. The local community influence the shops by pressure groups that are organised to lobby the business and other groups of stakeholders. Some pressure groups are set up for particular purpose, such as to prevent the building of a bypass, while others, such as Friends of the Earth, are permanent organisations with specific objectives. - The government: the government has interest in the shops because of the well-being of all sections of society, including employees and members of the public and the environment. The government can influence the shops by legislating matters affecting people or the environment. Examples of legislation can be seen in employment and health and safety law, and consumer and environmental protection. Many items of legislation are now passed down from the EU. ?? ?? ?? ?? 1 ...read more.

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