Michelle Lee        Wheatfield’s coursework        

Wheatfield’s Ltd

        Wheatfield’s Limited is a private Limited company. This means that it is in the private sector of the economy owned by individuals (shareholders) who want to make a profit, therefore the business is not owned by the government. The main aims of the business will include making a profit, survival and possibly expanding. Limited companies are more expensive to set up but they do carry less of a financial risk.

 The business is owned by shareholders, these are people who have invested their money into the business. They could be ordinary shareholders and have a vote in how the company is run at the Annual General Meeting or preference share holders who have no vote in the AGM but are paid their dividend before other shareholders. In this case the shareholders must be members of the family.

The business has an Articles and memorandum of Association. These are legal documents required with setting up a company and they must be registered with the Registrar of Companies. They contain details of the company’s planned activities and internal organisation. It has a certificate of incorporation which is a legal document that allows the business to trade legally.

        The Wheatfield’s Ltd Company has limited liability which means the owners will not risk their personal possessions if the business runs into financial difficulty for example bankruptcy. Shareholders will lose their investment but cannot be asked to contribute to other business debts. Being an incorporated business means they have a separate legal identity for the business.

Advantages of a business such as Wheatfield’s are that it has limited liability and it is incorporated, the shareholders are not putting themselves and any of their personal possessions at any risk. Having shareholders owning a company is also an advantage of this type of business. As shares are sold it is a lot easier to raise liquid capital.

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Disadvantages of Wheatfield’s are the fact that all the profit made within in the company has to be shared between the shareholders. It is very difficult to set up this type of business because of all the legal documentation that has to be processed; it takes up a lot of money and time. Also a company by law must publish its accounts. This isn’t the case with sole traders and partnerships

The main objectives of a business such as Wheatfield’s Ltd are to make a profit, survive, expand and get a good reputation. The business was founded in 1936 which ...

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