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

Investigating Business - Ownership

Extracts from this document...

Introduction

Investigating Business Unit One Task One: Ownership Introduction I have chosen to base my assignment on the following businesses: Sole-Trader for which I have chosen Errol Anderson's business: Errol Anderson Motors PLC for which I have chosen Sainsbury's I have chosen these businesses because a Sole-Trader and a PLC make a good comparison and therefore I have chosen a sole-Trader and a PLC. I have chosen Sainsbury's as my PLC because firstly my teacher recommended this PLC to me. Another reason for choosing this PLC is that it is one of the UK's successful businesses and also is a well known business in the UK. I am also a regular customer of Sainsbury's and there for it is easier for me to talk about the services they provide their customers with. The website of this PLC also is very useful because it provides us with a Student Section in which the website allows us to look at the company's history, company information and also it provides us with a Media Centre detail. Sainsbury's has many articles in local newspapers and reports on television. It is a very popular business in the form of a PLC and therefore I have Chosen this business. I have chosen Errol Anderson, as my Sole-Trader because my teacher recommended me to do this Sole-Trader if I didn't know a LTD, a Sole-Trader or someone in Partnership business. ...read more.

Middle

A small part profit which is made from the PLC is divided in the shareholders according to how much shares they have bought of the PLC and how much money they have invested and the rest is reinvested in the business or saved for help in the future. The advantage of having a Public Limited Company is that the shareholders of the company has Limited Liability that means that if the business fails then the money which the public who are shareholders have invested in the business would be taken. No personal belongings taken. Limited Liability is that if the business fail the owners (shareholders) lose only the money that has been invested in the business. So therefore there isn't as large risk as the Sole-Trader of losing personal belongings.Sainsbury's. The owners of Sainsbury's are the Shareholder who invests money in the business to get a part of the profit in the company. The capital that starts a PLC comes from the shareholders who invest in the business. The public can invest in the Differences between Errol Anderson Motors (Sole-Trader) and Sainsbury's (PLC) Owners The differences between a Sole-Trader owner and a PLC owner are that a Sole-Trader is a one-person business so therefore the owner of a Sole-Trader is the owner himself. ...read more.

Conclusion

Overall the difference between the losses of a PLC and Sole-Trader is that shareholders selling their shares can damage a PLC. But the Sole-Trader can also be damaged if it is on unlimited liability that can force them to sell their personal belongings. Decision-making The differences between the decision making in a PLC and a Sole-Trader is that a Sole-Trader like Errol does one-person business so therefore the Sole-Trader (Errol) makes his decisions himself and is in control of the business. So therefore a Sole-Trader like Errol decides for himself. The decision making of a PLC is made by the Boards of Directors. The Board of Director are shareholders who are elected by other shareholders to be the Board of Directors and have most of the power in the PLC in which the shareholders form partnership and groups to become Board of Directors. Overall the differences between decisions making of a Sole-Trader and a PLC is that a Sole-Trader is the owner of the business so they make decisions. But the owners of a PLC are the shareholders and if a shareholder or shareholders who own more than 50% of the company then they are made the Board of Directors and they are the ones who make the decision for a PLC. By Yahyah Aman 10P ...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. Compare and Contrast a set of Final Accounts for a Sole Trader and a ...

    This is usual for a non-profit organisation's accounts to show this separately, as their main objective is to provide a service. This is unlike a sole trader whose accounts clearly state all of the business's trading activities as it is required by law.

  2. Business Studies(Setting up your own business)

    In the first year my objectives would be to: Meet the locals and get to know them, surviving and definitely not going bust. In the second year my objectives would be to: Start to make profits and have the word about my caf´┐Ż spread around nearby towns.

  1. English for business

    moody, annoyed, bored, lacking confidence, reluctant, incomprehensible I often feel that I am at the mercy of outside forces beyond my control. I often feel that life is passing me by. When people praise my work I believe that usually they really mean it.

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

    Some partners have limited liability - limited/sleeping partners - they do not take part in the day-to-day running of the business ii. At least one partner have unlimited liability 3. Partnership lack capital More capital than sole trader; still there's a limit of money because of limit of 20 partners

  1. Applied Business Unit 1

    Another factor which suggests asda is meeting their aims and objectives is the fact that sales have increased from 14.3 billion in 2005 to 14.9 billion in 2006. This suggests that customers are happy with Asda products and Asda are meeting their aim to be "Britain's best value retailer."

  2. Business Plan. After putting a lot of thought into what kind of business we ...

    Choosing the right form of ownership As an entrepreneur I have chosen to work within a partnership as once the business has expanded I would need more people to help me keep up with the work loads. Also I felt that having another person in my business would give me

  1. Is it a sound business decision to locate a Coffee Republic franchise in Finchley ...

    This is important as Coffee Republic want lots of customers as well as easy transport links. Pedestrian Count Primary Quantitative - Same as traffic, as we recorded how many pedestrians had walked by as a figure. Similar to the traffic count, I was once again timed for two minutes, and

  2. Business Studies- Unit 1- Business Ownership

    If a Sole Trader became successful, expansion could be easier if joined with somebody else. The workload is shared between the partners, but so is the profit capital. If one partner wants to expand into another field, it would be highly beneficial to employ a partner with expertise in that particular field.

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