A private limited company is one where liability is limited; this means the company has a limit on how big it can grow, on how many shareholders it can maintain. The liability is limited to the value of the shares issued therefore if there were any debts the debts are that of the companies and not the owners (shareholders.)
On the other hand a public limited company (PLC) also has shares in their company however these shares can be bought by anyone in the general public from the stock exchange. Ownership is therefore available to anyone who wants to own shares in the company, there is no limit on the liability which the PLC owns.
Hilton is a public limited company, it became this when it was formed and listed on the New York stock exchange in 1946, nearly thirty years after Conrad Hilton bought his first hotel in 1919 Cisco, Texas. The Hilton family has always had top priority in the Hotels’ business corporation
Members-
Each organisation within the travel and tourism industry whether it is Private or Public could have any amount of members due to the size of the business, A business which is formed by a partnership could have up to 20 partners legitimately, there would be less members in a sole trading organisation as this would normally be a self employed self set-up business which would usually be financed by loans from banks.
The founder of Hilton hotels is Conrad Hilton and through the generations the business has been kept in the family until 1946 when individuals from the public could buy shares in the business from the New York Stock Exchange. However even though the public could buy shares the Hilton family were still the single largest shareholders as they held 97% of the business until May 1999 when it was sold to Ladbrokes PLC through the London stock exchange.
In July 2007 Hilton agreed to an all-cash buyout from LP in a $20.1 billion deal that would make Blackstone the world's largest hotel owner. Then in October 2007 Christopher J. Nassetta was appointed President and Chief Executive Officer of Hilton.
Distribution of profits-
Shareholders- Hilton is a Public Limited company and this means that they have invited people to invest shares in their company. Providing these investors with a return is important to encourage further investment and therefore using company profits to re-pay shareholders is important on a regular basis.
The people who have invested in Hilton over the years will have seen their shares grow as Hiltons’ profit margins have grown successfully and steadily, the more profit Hilton makes then the shareholders get more retuned money.
Retained profit- profits from a business can be used for their own personal use or can be used to put back into the business; this is often called ploughing back the profits. A retained profit is only available to a business which is already in existence, in the early stages of setting up a business it may be necessary to put a lot of the profits back into the business, this finance would normally be used to buy new equipment and more stock of products and services to hopefully make the business more efficient and profitable in the future. For example, Hilton opened its newest hotel- The Hilton Garden Inn University Heights in May 2007, in the Albany area of New York, it can accommodate up to 200 people depending on the needs of the group. This is how they put their profit back into the business- by opening another hotel.
Control-
Board of directors- this is a group of people who are elected by the shareholders of an organisation and have the responsibility of overseeing the running of the organisation. Public companies usually have executive and non-executive directors. Sometimes the board may be referred to as a board of trustees or a board of governors, one member of the board will be appointed chairman.
Four nominees to the Hilton Board of Directors were elected to serve three-year terms. Christine Garvey, Peter M. George, Barron Hilton and John L. Notter, were all elected with more than 93 percent of the votes cast. In addition, Sam D. Young, Jr. has retired from the Hilton Board after 31 years of service. Currently, Hilton's Board of Directors has 11 members.
The president and chief executive is Christopher Nassesta.
Sources of finance-
The main source of finance of any business is normally a bank loan; a bank loan is very flexible. They can vary in the length of time that the loan has to be repaid. Loans which are arranged are less than one year and are considered short term finance. As with any other form of loan there are interest payments to be made and this can be expensive if it is to be repaid over a longer period of time, this too can vary.
Conrad Hilton the founder of Hilton Hotels Corporation had inherited money from his father and had invested it in buying the Mobley Hotel Cisco, before this he helped his father build an Inn and a General store, when Conrad passed on he left a huge inheritance between his children and nieces and nephews who then expanded the business and brought shares into use.
Documentation needed to set up business-
Part 2
Type of organisation-
The Northern Ireland Tourist Board is a non-profit making organisation as it is government funded.
As they are government funded they are a part of the public sector travel and tourism organisations, all public sector organisations are either government funded, they operate nationally, they are involved in building the economy, employment, and promoting and developing the tourism sector, and they are also most importantly non-profit making.
Ownership-
The NITB is a private limited company as well as having share, a private limited company is one where the liability is limited. Within such a company the liability is limited to the value of shares issued. This means debts are the companies and not the owners.
There is also a type of partnership within the NITB as the funding comes from different places, in a company where there is a partnership the ownership is shared between the partners. It should have an agreement which is a legal document set up to show the rights and responsibilities of all partners.
Members-
Within a private organisation, the members would be the owners or managers, however in a public sector organisation the members are those partners or other tourism businesses.
Within the NITB there are a group of people known as the board of directors, they are listed below within the control section.
The NITB is funded by several different government organisations including the DETI.
Distribution of profits-
Control-
The group of people known as the board of directors are the main people in control of the NITB. The role of the directors in the public organisation is practically the same as their role would be in any private business, they are the main decision makers; they decide upon any thing which needs to be improved or if there are any issues to be discussed or weather or not to introduce anything new to make Northern Ireland more tourism friendly.
The ten members of the board of directors in the NITB are:
Tom McGrath- this is the chairman
Irene Adair
John Mooney
Andrea Hayes
Mandy Martin
Lyn Fawcett
John McGrillen
Cllr Jim Speers
Kevin Baird
Aideen Corr.
Sources of finance-
Documentation needed to set up a business-
