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Type of Business Ownership, sectors, types of bysiness and size of business

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Introduction

Type of Business Ownership, sectors, types of bysiness and size of business A business is the buying and selling of goods and services. The term "business" is often applied to a large number of very different activities and organisations. It can be used to refer to organisations from elementary one-person firms to multinational corporations employing hundreds of people. Examples of business organisations include a supermarket or a university. There are three types of businesses, public, private, and voluntary. 2.1b The voluntary sector The voluntary sector is made up of non-profit organisations such as charities and youth centres. . The majority of the staff are unpaid and they volunteer for their position. Other mutual organisations such as cooperative societies and friendly societies are also non-profit making, but employ a significant number of paid staff. Charities are publicly or privately funded to increase awareness of a particular cause. They raise funds from donations. They may run a shop or sell badges. These activities aim to make a profit, but this is only to fund the charities main activities. An example of a charity is Oxfam. To be recognised as a charity the organisation must apply for charitable status with the Charities Commission, the government operates this. As a charity the organisation does not have to pay tax on its profits, so that its cause may receive maximum benefit. 2.1c Public sector: A number of key services are provided in the public sector, this includes the postal service, education, housing, fire, police etc. Before the privatisation, which started in 1979, many of these services were controlled far more directly by the hand of the government. Many of the services were later contracted out to private companies. The management of the business aspects of a service is know known to be of great importance and they have specialist managers working within, there are two reasons for this; to ensure the business lies directly in the hands of those directly responsible for running and managing the service. ...read more.

Middle

This is because if one partner enters into a business agreement with a third party, i.e. someone outside the partnership, then he is acting on behalf of the Partnership and not for himself. Hence the importance of clearly stating the duties and responsibilities of each partner. You can have a limited partnership, but importantly, one or more of the partners must have unlimited liability; the problem is: which partner will take on unlimited liability. You cannot transfer your share of the partnership to another without the consent of the other partner. Partnership This is when 2 or more people join together to form a business unit. Partnership easy to establish By agreement 20 owners in most cases ought to be a written deed of partnership unlimited liability work load pressure shared work loads can be allocated may go some way to eliminating problems experienced by sole trader. Can obtain greater finance than the sole trader or partnership. Decision making may be slow (must consult partners) The business tends to run more smoothly as there are shared responsibility and there fore the whole pressure of the business is not put on one person, also the decision making is made by more than one person and therefore there is more than one person's opinion shared. A sleeping partner invests in the partnership but does not take part in the day to day running. This person has limited liability, but at least one partner must have unlimited liability. A Deed of Partnership is a legal document that forms a contract between the partners. It covers issues such as the division of profits, the closure of the partnership, the rights each partner has and the rules for taking on new partners. The Partnership Act rules that in the absence of a partnership agreement profits will be shared equally and no interest is received on capital. Partnerships are associations of two or more people to carry on a business with a view to making a profit; they can consist of 2-20 owners in most cases, but normally no more than 20. ...read more.

Conclusion

Each member has one vote at meetings. Retail co-operatives are a dying force in UK retailing because they have been unable to compete with other retail outlets such as the large supermarkets. Co-operatives are where groups of people come together for shared benefits. Its members believe in co-operation, working together for a common purpose. Worker Co-operatives are businesses owned and run by the whole workforce. They share ownership, control and the profits amongst themselves. They are often set up due to business failure. A Consumer co-operative could be a high street store owned by customers and aim to maximise benefits for its customers e.g. Co-op. The main advantages of a co-operative organisation are that there are less likely to be disagreements as workers are also the owners and each member has a vote. Also all workers should be paid the same. Though there are advantages, there are more disadvantages to this type of business: it is difficult to persuade workers to maintain co-operative because it is easier to set up a partnership. New workers may also find it hard to settle into the business as a unit has already been formed between the workers. It is also difficult for a co-operative organisation to grow. 2.1j Charitable and non-profit organisations: Charities have a high profile in the UK. Organisations such as Oxfam and Mencap are familiar to most people. Charities have a number of clear objectives: to raise the public's awareness of the cause that they support and to raise funds to support their projects. Charities trade with the intention of earning as much revenue as possible to spend on their particular causes. Pressure groups operate in a similar way to charities; they are a collection of people who support a common cause. Their objectives includes bring publicity to the causes they promote, they aim to increase the number of people who support their activities. Members provide money through subscriptions and donations, and some may be prepared to support the cause through direct action. Another important objective is being seen to care for the environment. ...read more.

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