Introduction of my two contrasting businesses

The business ownership is appropriate for the florist, because the operations of the business are small time and the running cost wouldn't be too much as the business is up and running. The return of the business will be a healthy profit one for a sole trader if it is a partnership it will have to be shared. And the sole trader will suit the business because a sole trader can make quick decisions on the business best interest. So will the partnership but they will have to discuss the decision between them self's and this can take time. Sole trader is suit for the business if it is partnership the partner can have a disagreement and the business will be over. So the ownership of Well Hall Florist was taken into long consideration. And Mrs. King Decision the business should be a sole trader on the fact,

Benefits of the Ownership Well Hall Florist

* Without any partner no decision problems

* No profit sharing (so the money can be invested back into the business)

* If disagreement the business will be dissolved

* Also Mrs. King would be her own boss

Drawbacks of the Ownership of Well Hall Florist,

* The business would be unlimited liability

* The business would find it harder to gain funds

The business is appropriate for a sole trader because the benefits are good and there are also drawbacks. But the drawbacks the business would be unlimited liability Mrs. King didn't mind that. And the other drawback is harder to gain funds and this is ok as Mrs. King had capital too start. So overall the business ownership is a appropriate on the facts stated.

The Well Hall Florist is an unlimited liability which means that Mrs King is solely responsible for all debts. This is that if the business had financial problems (debts) that Mrs King will have to pay all cost for the business. She has her house up for security to the debtors. The debtors has chosen this was a risk to give money to a sole trader so Mrs. king has to put up her possessions up for security for the debtors to approve of the loan or loan amount so basically if the business finds its self in sufficient amount of debt their security can be taken to cover the amount of debt. For this business the house of Mrs King was the security for the debtor (bank). Overall the liability of Well Hall Florist is that the business is an unlimited company and that means Mrs King the sole trader is responsible for all debts, the security is the house of Mrs King's for the loans lenders. And Mrs King personal possessions will have to be sold if she doesn't pay her debts- e.g. premises, house and car to pay off all her businesses debts.

Advantages

* The business doesn't have to share profits

* Only Mrs. King makes decisions making

Disadvantages

* The business is unlimited liability

* The business finds it harder to gain capital

The ownership suit the business activity as the sole owner Mrs. King can make quick decision. The business activity will need money and time invested for a healthy return. The ownership suit the activity as the operations are small. For instance arrange flowers, a 'job list' of thing to do, gift wrapping and preparing bouquets. These activity are small to keep running it take a large invest to start up the business and a expenses are small but time consuming as Mrs. King does every thing from management to human resources, to see a healthy return. The Florist is a sole Trader that suits the type of business and functions well under the current ownership.

The ownership (sole trader) suit the Florist business on the fact

* Quick decision

* Small scale of activity

* Good profit return for a sole trader

* Enough capital to cover the activity

Overall the ownership suit Well Hall Florist as the business activity are on a small scale with the ownership as a sole trader the business can make an healthy profit. Worth while running the business, Mrs. King is happy with the ownership and has no plans for the future expansion. The sole trader ownership has a key advantage that it doesn't share profits, so if the profits are healthy within a couple of year the business can expand operation with an investment of profit back into the business (up to the sole trader).

BUSINESS OWNERSHIP OF MY PLC COMPANY RICHER SOUNDS

(GROUP 2)

The company of Richer Sounds is owned by one person Julian Richer chairman/owner of the company, the type of ownership is PLC. This is appropriate for the business of Richer Sounds because the company is financial sound. The business is making a healthy enough profit for the business to expand, which is one of its objectives. But if the case was the business was under financial pressure, the best opinions will the put shares on the stock exchange so the business could get financial backing. Richer Sounds is a very successful business organisation it wouldn't need shares sold for new owner to put in money to the business.

The one owner (Julian Richer) has made Richer sounds a national business organisation without any financial backing just by making a healthy profit and expanding the stores across the UK. Once Richer Sounds sold shares to the previous owner of the property that Richer was about to purchase (the first Richer Sounds store) and that was 74% of the business. Within the first 9 months of the business running Julian Richer brought back the shares to leave him with 100% control of the business. After this Julian Richer made a promise to himself to never have share holds of the business, just because they would want to put up the prices for bigger profit margins.

The business of Richer Sounds is a big operation today. From one store to over 50 stores in the UK just by investing profit back into the business operation. That has lead to the business to expand without putting shares on the stock exchange market to raise funds to expand. The business ownership is appropriate for Richer Sounds to be owned by one person and run as a PLC. On the fact that the business is run effectively by the current ownership. So there are no problems with the current ownership, and the business can expand and make health profit. What most businesses aims and objectives are. So the business is ownership is appropriate for the business of Richer Sounds.

It is a Public Limited Company because he didn't want anyone else but him to own the company because what happened to him when he started his first shop and it wouldn't happen again to him and so their shares are not for sale on the stock exchange. The main reason behind limited company was to gain the benefits of limited liability

Advantages of Richer sound's ownership

* It is a PLC but there are no shares for sale on the stock exchange

This means there are two boards of director at Richer Sounds

The main board of directors

This comprises Julian Richer, the Chairman; David Robinson, the Group MD; John Currier, the Financial Director and also the Chief Executive of our (separate) manufacturing company.

The management board of richer sounds

This comprises Julian, David Robinson and John Currier as well as Jez Avens, Deputy MD; Claudia Vernon, Marketing Director; John Clayton, Operation and Training Director; Gary Woodward, Purchasing Director, Julie Abraham, IT Director and Solomon Essah Essel, Distribution Director.

* It can gain benefits of limited liability

This means the business has debts but they aren't personal debts instead their liability is limited to the amount of their own investment into Richer Sounds.

The disadvantages of Richer Sound's ownership are:

* The company has to file full accounts so means that the Richer Sounds has to keep account of their record and have to be file and can be check any time by Inland revenue and the public as it is a PLC

* Have their accounts audited (checked) each year by qualified auditors. Because the business of Richer Sounds is a PLC this means that the business has to be checked by qualified auditors to check the business is doing what they are saying on paper.

The type of ownership of Richer Sounds is PLC this suit the business. The business operations are all across the UK. So this suits the business ownership because the business operations are on a large scale. Richer Sounds needs to raise capital quickly to buy stock as they trade in 49 outlets spread out across UK. So the business is trading in a number of city in the UK and has to keep the stores stock up with the latest designs and stock it up in the outlets. So the Richer is a national operation so the PLC ownership suits the business.

Richer Sounds ownership (PLC) suits the business Activity's on the fact

* A large scale o activity

* Needs capital ready to fill outlet up with stock (49 Outlet)

* Unlimited liability (which means that the company debt is personal)

* Easy to raise capital

* Good for profit return and expansion of the business

Overall the ownership (PLC) is the best thing for the business as stated on the facts above. The business needs easy raise capital as stock will run out and new designs will come in. And the 49 outlet stores will have to be stock up and so capital has to be ready as stock will be the be regularly stock up in all 49 outlets. And the business is well run as a PLC company and the business has expanded to 49 outlets and is still expanding operations. The business suit the ownership as a PLC is in the best interest of the business success and expansion in the present and future.

THE COMPARISON OF OWNERSHIP OF WELL HALL FLORIST (GROUP 1) AND RICHER SOUNDS (GROUP 2)

In the types of ownerships both businesses have one owner that is what the businesses have in common, but they are different ownerships one is a sole trader and the other a public limited company. The small business Well Hall Florist is a sole trader and Richer Sounds is the bigger company that is plc. Well Hall Florist is a sole trader ownership because the owner Mrs Kings didn't want to have any partner in the business because of previous problems. The previous problem like all the responsibilities were left on herself so she decided to start her own business just because of the experience gain by the previous partnership and secure financial status. But Richer Sounds is a big company but the owner Julian Richer decided that the business will not put their shares for sale on the stock exchange market so they decided early on in the business that they would become a plc so their shares can't be brought so he owns 100% of the company. Overall the businesses are differently owned because of the owner decisions and past experiences.

The comparison between the liabilities for both businesses is that the business are differently own and that means different liability for both businesses. The first business is Richer Sounds their liability are limited liability's because they owned a plc. That consists of the company has to file full accounts also the company have their accounts audited. But the benefits are that they have limited liabilities and that their shares can't be on the stock exchange. The sole trader Well Hall Florist has the unlimited liability that consists of all responsible for all debts for the business, which the business has up the owner house for security. Overall the business are different in liabilities because of the ownership of the business that deicide the liability for the business.