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

My assignment will be based on two businesses, a sole trader and a public limited company.

Extracts from this document...

Introduction

BUSINESS COURSEWORK Introduction My assignment will be based on two businesses, a sole trader and a public limited company. The sole trader I am going to be investigating is Errol Anderson who owns a business repairing and servicing cars. The business in named as 'Errol Anderson Motors'. The public limited company is called as J-Sainsbury, which is a well-established company with a lot of shareholders and quite high of a share price. Sole Trader What is a sole trader? A sole trader is someone who has set up in business. The sole trader owns, controls his/her business. It is also quite straightforward is set up. Errol Anderson is a sole trader, he is self-employed because he owns, runs and controls a small local garage. Sometime ago this garage used to belong to Mr.Turner and Errol used to work here. Mr.Turner taught Errol everything he needs to know about owning a garage and he trusted Errol. In 1998, Mr.Turner told Errol hat he had to leave to Scotland and he couldn't run the business any more. Mr.Turner retired and Errol bought the business of Mr.Turner. ...read more.

Middle

These directors are chosen in an annul meeting which last took place on the 12 of July 2004. Philip Hampton is the chairman of Sainsbury. In the PLC Sainsbury, the shareholders can only speak their thoughts and the get to vote at the annual meetings that is held once a year and it is mainly the directors who have power over the company. Limited liability Sainsbury's shareholders have a limited liability so they are not personally liable for Sainsbury's debts. The only money they can lose is the money invested in purchasing shares in that company. Profits The portion of a PLC profits is reinvested in the business and a portion of a company's net income paid shareholders as a return on their investment in the company. A shareholders dividend yield is determined by dividing the company's annual dividend of its current share price. Dividends are declared on suspended at the discretion of the company's board of directors. Differences between a sole trader and a Public Limited Company (PLC) Sole Trader PLC Sainsbury Owners Errol Shareholders Liability Unlimited Limited Losses Full Responsibility Money Invested Decision Making Errol Board Of Directors Owners The owners of my PLC Sainsbury are the shareholders, my sole trader, Errol Anderson is not owned by a group of people or by a single person. ...read more.

Conclusion

My sole trader, Errol Anderson is the decision maker of his small business. He has total control over business, including ownership and responsible for all profits and losses. Business Changes A sole trader can make a lot of changes in order to make their business more successful and easer to control. Business Ownership My sole trader can change from a sole trader to partnership. A partnership involves two or more co-owners participation together in a business. A partner may be an individual or a company and each partner shares in the responsibility, capital and profits of the business. It is a good idea to sign a deed of partnership. If it works out Errol's business would be more might successful and he can invest in making is more changes to make his business much more bigger and successful. Advantages Disadvantages Inexpensive to establish and operate. Each partner is fully liable for the full debts of the partnership. Ability to split income on level ownership. There is limited flexibility in distributing profits from properly. Responsibility for the operation of the business is shared. Ability to raise finance for the business is easer. Capital losses may be offset by other non-business capital gains derived by the other individual owners. ...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. Marked by a teacher

    Types of businesses - Marks and Spencer is a (PLC) Public Limited Company.

    4 star(s)

    Overall, we can see that growing the organization Marks and Spencer was done by four steps, firstly starting as a Sole trader, where Michael had to invest his own money and had to take risks.

  2. Business Studies Edexcel Coursework

    (Please tick the appropriate box) Yes No Closed questions are more favourable to consumers because they are quicker and easier to complete. On the other hand, people may need a supplementary choice or an opportunity to express an individual opinion.

  1. Advantages of a Public Limited Company (Plc)

    * Partners can cover for each other during periods of sickness and holidays Disadvantages of a Partnership * Partners may disagree on each other opinions * Partners have unlimited liability * They may still lack capital * When profits are made they have to be shared * It will end,

  2. IGCSE Businesses Studies Revision Notes

    Observation - Using recording, watching or audits to observe consumer spending patterns. Experiments - Getting first reactions from consumers by having them test samples in shops.

  1. Business Studies

    data Observational research > Gathering primary data by observing Surveys - Asking a number of people the same questions Experimental research > Gathering data by selecting a group of people and observing their behaviour based on different conditions > To examine how people react to different products and features Secondary

  2. private limited company and public limited company

    So if a person buys shares worth �800 and the business makes profit so the prices of the share will increase and that person can sell the share for profit.

  1. Explain the main differences between a Sole Trader, a Limited Company and a Public ...

    Therefore, there are few legal constraints and the owner has unlimited liability for the company. This means that any debts are the single owner's debts, not company's debts and so if the owner stops trading with large debts, the owner will be personally responsible for these debts.

  2. Compare and Contrast a set of Final Accounts for a Sole Trader and a ...

    provide financial information based on the performance of a business over an accounting period. Unlike a non-profit organisation where it shows a surplus or deficit of income and expenditure it shows Gross Profit and Net Profit. The Gross Profit measures the success of the business' trading activities, where the net

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