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Task1: different types of business ownership

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Introduction

Task1: different types of business ownership Types of ownership examples Description Advantages / disadvantages of this type of ownership What type of business ownership could they change to Reasons for change Sole trader A GB store is a corner shop in Leeds chapeltown and is also an off licence. Leeds city stores is a corner shop in Leeds Harhills which sells sweets and meat. Yasin bros is a corner shop in Leeds Harehills which sells sweets, biscuits and fish. > A sole trader is a business owned and run by one individual. > They are usually a small business. > Sole trader have unlimited liability. > This means that there is a legal obligation on the owners of the business to pay all the debts of the business. > There is distinction between the owner and the business. > The owner could loose all their personal possessions to pay the debt of the business. > Most business starts as sole traders or partnerships. > Sole traders include plumbers, electricians and mobile hairdressers. > The sole trader can keep all the profit. > Can make all of the decisions. > Respect. > Less arguments/ conflicts > The sole trader can choose what hours they want to work and what holidays they work. ...read more.

Middle

> So that all decisions are made by the individual. A plc could become a partnership. > If a group of partners buy all of the shares. > So that they gain more profits. > So that partners can make all decisions. > If they want the company to become smaller. > If the company is not profitable as a public limited company. Private limited company (LTD) Woodhead publishing Ltd Nestle UK LTD Panasonic UK LTD > Can only sell private shares to family or friends. > Has limited liability. > Are usually large, well know business. > Limited liability and the owners can choose the share holders. Private limited company could change into a soul trader. > If one person buys all of the shares. > To keep all of the profits. > To avoid conflicts. > Get to make all of the decisions. > Is the boss of his selves. > Must disclose financial information. > Can not sell shares publically. > Must have an annual general meeting (AGM) which can be expensive. Private limited company could change into franchise. > To raise capital through minimum effort. > So that the business becomes better known to customers. > If the owners want to give some control to the franchiser. ...read more.

Conclusion

so that they can raise capital through selling shares on the stock exchange. A Private Limited Company (LTD) could again become into a franchise to raise capital through minimum effort and so that the business becomes better known. Franchise A franchise could become into a sole trader if the franchise is not successful and if no one wants to become a franchise. A franchise could also become into a partnership if the franchise is not successful and if no one wants to become a franchise. Public Limited Company (PLC) A Public Limited Company (PLC) could become into a sole trader if one person buys all the shares, to keep all of the profits and to have more power. A Public Limited Company (PLC) could also become into a Private Limited Company (LTD) to become a smaller business and so that they can choose who buys their shares. A Public Limited Company (PLC) could again become into a franchise to become better known and so that they can raise capital with minimum investment. Co-Operative A co-operative could become into a public limited company (PLC) to raise capital and if the arms of the business change. A co-operative could also become into a sole trader, if one person buys out the owners, to reduce conflict, so that they can make all of the decisions and so that they get all of the profits. By Ahsanul Islam ?? ?? ?? ?? Ahsanul Islam 10YER 1 ...read more.

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