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

Types of Business Ownership

Extracts from this document...

Introduction

Types of Business Ownership JCC Limited is a private limited company. Other forms of business ownership include: The sole trader. This is the most common form of private sector business. This type of business has one owner who runs the business and may employ any number of people to help. Advantages of being a sole trader include the lack of legal restrictions, the sole trader is able to set up their business relatively quickly. Also all profits after tax are kept by the owner. There are a number of disadvantages to being a sole trader though, the main one being that sole traders have unlimited liability. This means that if the business gets into heavy debts then the owner is solely accountable and could be forced to sell personal possessions to cover these debts. Partnerships. A partnership made up of a number to people (between two and twenty). The members of the partnership share the responsibility of running the business and also share any profits the business makes. ...read more.

Middle

Private Limited Companies, JCC Limited is a private limited company. These types of business tend to be smaller than PLC's. Like PLC's private limited companies have limited liability. This means that the owner, Mark Du Jardin in the case of JCC Ltd. can only lose what he has originally put into the business. The shares within a private limited company can only be brought and sold privately and cannot be advertised for general sale on the stock market. As the only shareholder Mark Du Jardin must agree on the transfer of shares. Private limited companies are often family run businesses, such as JCC Ltd. As Mark Du Jardin is the sole shareholder and therefore he owns the entire business. Control of JCC Ltd. cannot be lost to outsiders as the shares cannot be brought be the general public, also there is the opportunity for more capital to be made by the company as there is no limit on the number of shareholders, but it is unlikely outsiders will be offered shares as the Du Jardin's want to keep the business in the family. ...read more.

Conclusion

There is a lot more formal documentation for JCC Ltd. as it is a private limited company rather than if it were a sole trader or a partnership. When forming a private limited company two documents must be produced. The first is the Memorandum of Association this must include: * The name of the company * The name and address of the company's registered office * The objectives of the company * The amount of capital to be raised and the number of shares to be issued The second document that must be produced is the Articles of Association this must include: * The rights of the shareholders depending on the type of shares they hold * The procedures for appointing directors and the scope of their powers * The timing and frequency of company meetings * The arrangements for auditing company accounts If these two documents are successful the company will be awarded the Certificate of Incorporation which allows it to trade. The company must submit a copy of its annual accounts to the Registrar each year. Ryan Newman ...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. Exmaining different types of business ownership with examples of each.

    Another business purpose is to have more market share even though they have the biggest share of the market (35%). They also want to be bigger and better than their rival like Lindt, Kit Kat, Bounty, and Thornton's etc. They do this by making their products more attractive to the consumer than other brands.

  2. Assignment to investigate two types of business organisations - Sole traders and partnerships.

    I hope that West Point Hotel get there apartment finished soon so we can see if the capital will rise as predicted.

  1. In this section I will explain every one the different types of business ownership. ...

    Also if Tesco was not a Public Limited Company that would have to borrow money from the bank.

  2. English for business

    Answer the following: 1. Where do you encounter difficult people most? 2. How can you achieve a responsible and effective working relationship? 3. Are difficult people at work fixed in your life? 4. Do you find that life will become easier each time you deal with a difficult situation? 5.

  1. Business studies - Business Plan

    What toppings do you prefer on a Hotdog? Onions Cheese Bacon Bits None 4. How many times a week do you eat a Hotdog? 1 2 3 4 5 6 7+ 5. How much are you willing to pay for a Hotdog? 1.00� 1.50� 2.00� 2.50� 6. When you look for fast food does advertising affect your choice?

  2. Business Ownership

    Co-operative are often formed by the workers of a big company that closes down an unprofitable business. If the company, with all its resources cannot make a profit, the chances of the doing so are small. An example is the Minehead Shop co-operative which had survived for only 14 years.

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

    Also if you come up with an idea your partner can give you a verdict on whether they think your idea is good or not, you can also elaborate your ideas to see if you can improve them. It would be good for me to go into a partnership with

  2. Different types of ownership of business ranging from the simple to the complex. Here ...

    One of the largest advantages is the allocation of profits. Unlike larger companies sole proprietorships don't need to distribute profit amongst it's shareholders. All profit goes directly to the owner, who does with it as he or she sees fit.

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