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

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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.


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.


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.

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