Types of Ownership
Sole Trader - A Sole Trader is someone who owns the whole business and is responsible for everything in the business. An advantage to this type of business is that there is only one owner so they get to keep all the profits. A disadvantage is that a sole trader tends to have unlimited liability meaning that if their business was to go bankrupt their personal assets would act as security for the loans they had taken out so they would get taken.
Partnership – A partnership is when there are 2-20 people owning a business and all the partners are responsible for important decision and they each would get a share of the profits depending how much they invested to start off with. An advantage is that there is usually more money to start up with because there are usually more people investing in it. A disadvantage is just like a Sole Trader the personal assets of the owners would act as security when they take a loan, unlike a sole trader one person is not allowed to make the decision all of the owners have to consult.
Private LTD Company – This is to generate a profit; a company that is private provides a service to the public in-exchange for money. The shares are not available to the public on the stock exchange. This type of company has Limited Liability so that the personal possessions are not at risk. An advantage to this type of business is that it had limited liability so that means that the personal possessions are not at risk if the business was to go bankrupt. A disadvantage is that the company cannot sell shares on the stock exchange which could hinder the expansion and growth.
Public LTD Company (PLC) – This type of business is when they sell shares to the public on the stock exchange. They operate to make a profit and usually are big well-known co-operations. An advantage of this type of organisation is that it is able to expand due to being able to sell shares on the stock exchange. A disadvantage is that the company lose shares and have to consult the shareholders before making decisions.
Government Agency – These are the different departments in the government that look into the aspect of the business to see if the business is abiding by the laws and is not breaking any environmental laws. An advantage of this is that the consumer knows its health safety regulated and is safe to use. A disadvantage is that for these services the consumer has to pay a fee (VAT).
Government Department – These are the organisations in the public sector which operate for the benefit of the public such as: NHS and MI5.
Work Co-operations – These are the regulations for the employer in the same way a trade union is for the employee. If for example the employer feels that the employee in any way is not abiding by the rules on the contract they signed the Work Co-operations will step in and fight for the rights of the employer. The advantage is to the employer because they get the benefit of the
Voluntary Sector – This is when people volunteer to work for a public (government owned) organisation for the benefit of the public to offer their services for free to benefit the public; a person who is a doctor may volunteer to work at a hospital if they do not have enough doctors. An advantage is that people who require a service are able to receive due to people volunteering to work for the benefit of the public.
A mission statement - is a statement of the purpose for the reason that it is operating for or the person it exist for.
An aim - is something that a business sets for them for what they want to achieve over a period of time.
An objective - is something that a company sets themselves for what they want them to achieve but it has to be realistic and measureable.
Specific – It has to be clear what the objective is and what is the purpose of having that objective.
Measurable– It has to be measure able by time, money, quantity. This shows if the objective has been achieved
Attainable– Which the objective is realistic and is achievable.
Relevant – Is it relevant to the business in sense that is it useful for the business to achieve that objective.
Time – How much time will that objective take and how long will it last for.
The type of ownership of Tesco is a Public LTD Company (PLC) – This type of business is when they sell shares to the public on the stock exchange. They operate to make a profit and usually are big well-known co-operations. An advantage of this type of organisation is that it is able to expand due to being able to sell shares on the stock exchange. A disadvantage is that the company lose shares and have to consult the shareholders before making decisions.
MISSION STATEMENT – At Tesco’s we will deliver an ever improving quality shopping experience for our customers with great products at fair prices. We will exceed customer’s expectation for healthy safe fresh and tasty food making their lives easier every day.
AIMS – The strategy that Sainsbury’s uses are based on five areas of focus. These areas are underpinned by Sainsbury’s strong heritage and brand which constantly set it apart from out major competitors.
- Good quality food at competitive prices
- Expanding on non-food ranges and services
- Reaching more customers through other services available
- More Supermarkets
- Property management
Washwood Heath Academy
The type of ownership of Washwood Heath Academy is the government. The school does not aim to make a profit but to provide a service to the public financed by the government.
MISSION STATEMENT - The Washwood Heath Academy is a college where we all strive to achieve academic distinction and personal growth.
AIMS – The aim of the college is to provide a good education with career and university prospects
- Improve OFSTED ratings
- Improve Exam Results
- Improve Attendance
- Provide the best education for students
- Improve Safe Guarding