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GCSE: Business, Companies and Organisation, Activity
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Five different forms of ownership that you should know
- 1 Sole traders or sole proprietors are the simplest form of business ownership requiring no legal documentation. Anyone can just set themselves up in business. It is by far the commonest form of business organisation. One of the main problems is that it can be hard to get finance to expand. This is in part because it has unlimited liability. That is full responsibility for all debts
- 2 Partnerships are where from 2 to 20 people join together to form a business. This gives each person access to more finance and expertise. They also have unlimited liability which can make it difficult to get the finance to expand.
- 3 Private Limited Companies (ltd after their name) are legally set up and enable the business to raise more finance by selling shares (part ownership) of the business. They have limited liability which means that investors can only lose the amount they have invested in the business. People must be invited to become shareholders and can only sell their shares with the permission of the other shareholders.
- 4 Public Limited Companies (PLC after their name) can sell shares to anyone and there are no restrictions on who can and cannot own the shares. They also have limited liability. These tend to be the largest businesses.
- 5 Cooperatives are owned usually by the employees. The employees pool their money and usually share responsibility for the decisions of the business.
What are the names of different sectors of industry?
- 1 The primary sector is concerned with the mining, growing and extraction of raw materials that are used to produce other things. Examples include farming, mining, forestry and fishing. Before the industrial revolution (about 1760 to 1830) this was the biggest sector in the UK. Now it is the smallest, employing less than 2% of the workforce.
- 2 The secondary sector is the part of the economy concerned with manufacturing. It therefore involves turning primary products into other products that consumers and businesses will use. As a percentage of employment, this has fallen in the UK in recent years as more manufacturing is done abroad. The UK still manufactures many goods.
- 3 The tertiary sector is also called the service sector. It supports the production and distribution of products so includes industries like banking, retail, advertising and distribution. It is the largest sector of the UK economy.
- 4 Some commentators talk of the quaternary sector which is concerned with intellectual activities and the knowledge based part of the economy such as scientific research, government, libraries and information technology.
- 5 Goods move through the different sectors through what is known as the ‘chain of production’. So for instance oil comes from the primary sector where it is extracted from an oil well, to the secondary sector where it is refined into petrol or other products and then to the tertiary sector where it is sold to the consumers in a service station.
Five business aims
- 1 Most privately owned business aims to make a profit. This may only be in the long run. In the short run, a business may aim to increase market share or develop new products which will reduce profits in the short run.
- 2 Many businesses are in the public sector. This means that they are owned by the government or local government. Their main aim will usually be to provide a service to the public. They may charge for it to cover some of the costs but making a profit is unlikely to be an aim.
- 3 Businesses in the voluntary sector are usually charities that raise money to provide help to particular groups.
- 4 Businesses will normally have objectives which are much shorter term and are measures that will help them achieve their overall aim. It may relate to a level of sales (private sector), a level of service (public sector) or a particular group that will be helped (voluntary sector).
- 5 The terms private and public can get confusing. Private sector means owned by private individuals although it may be a public limited company. This means that shares in the company can be bought by any member of the public. However, it is still in the private sector.
I am planning to open an Italian restaurant which will be located in Ilford. The business will be owned and operated by me. My goals
* Although accounts are seen by the Inland Revenue, they do not have to be made public. * The business is usually small, and the owner is in charge of the management. Decisions can be made quickly * The owner gets all of the profit from the business * Being a small business can provide attention to the customers Disadvantages of Sole Trader * Sole traders have to work very long hours particularly when setting up a business. * Difficult for the business to expand * No continuity, if the owner is ill etc there is no one else to run the business.
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Partner liability can take several forms. General Partners (the usual situation) are fully liable for business debts. Limited Partners are limited to the amount of investment they have made in the Partnership. Nominal Partners also sometimes exist. These are people who allow their names top be used for the benefit of the partnership, usually for remuneration, but they do not get a share of the partnership profits. A "Partnership Agreement" usually governs the operation of a partnership. The specific terms of this agreement are determined by the partners themselves, covering issues such as: - Profit sharing - normally, partners share equally in the profits; - Entitlement to receive salaries and other benefits in kind (e.g.
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There are more then 700-plus stores and many distribution centres are located in United Kingdom. They have several office sites in the UK and Ireland, where there key support functions are based. The majority of office staff is based in Hertfordshire. Tesco has been operating on an international basis for long time, anticipating the need to become a major retail name in key regions, they moved into central Europe, where they have a strong presence in Hungary, Poland, Slovakia and the Czech Republic and the dynamic Asian market.
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The notion and decision making should be increasingly being moved away from central bureaucrats to local managers who are responsive to the needs of the local community. The central government funds most local services through a grant system. They also get funded through local taxes and charging people to use a local service. The needs of local communities are best met running services at local level by people who are most sympathetic and responsive to the needs of the local community.
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A company has to be created by registering with Companies House in accordance to The Companies Act 1985. When all the formalities of document creation and company acceptance are done, Companies House issues a Certificate of Incorporation, which is effectively the birth certificate of a company. As a human is considered a separate legal entity when issued with a birth certificate, so does a company. The House of Lords with the SALOMON v SALOMON & CO Ltd case established this principle of a separate legal entity in 1897: "In the eyes of the law a company is a person capable of perpetual succession** and quite distinct from the natural persons who are its members at any given time."
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Michael trademark, and gradually to remove the manufacturers' own brands from the products in Marks and Spencer. During the 1930s, Marks and Spencer developed a presence on London's fashionable Oxford Street and introduced the canned products to the food departments. For the period of Second World War (1939 - 1945), Marks and Spencer acted as the expertise for the British Government set up the wartime Utility Scheme, for bring clothing of reliable quality and availability for everyone. Marks and Spencer had expanded overseas to Canada in 1973. Marks and Spencer kept its momentum, its first two Continental European branch opened in Paris, France capital, and Brussels, Belgium capital, in 1975.
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Partnership business share out their profits equally and debts if any are run up. This is because partnership start up capital is the same. Partnerships have unlimited liability just like sole traders. If one of the partners runs up a very big debt all of the other partners are responsible for paying it off. So when choosing a partner for a partnership you have to be very careful. The advantages of setting up a partnership business is that more money can be raised as a start up capital. Each partner shares out the responsibility equally.
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What do recent attempts to adopt 'partnership' approaches and practices suggest about the changing management priorities in industrial relations?
Different writers tend to adopt different definitions and to emphasize potentially different elements and dimensions of partnership. It is prudent at this early stage that we come to some sort of conclusion as to what partnership approach has become dominant in Britain. In Britain to date, almost all discussion has been focused on company and workplace employment relations, thus 'partnership at work' - rather than the broader conception of 'social partnership' has attracted most interest (Tailby and Winchester, 2000). Partnership can have different meanings at different levels the term 'social partnership' has become more associated with the European level.
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* All profit that is made after tax is the owners. * There is no lengthy process to set up and the admin costs are low. * Sole traders can offer a personal service to customers mainly because of their size. There are however a few disadvantages to setting up as a Sole Trader: - * Sole Traders have unlimited liability and so if the business runs up debts, the owner is responsible for them and may risk losing personal possessions such as your home.
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where the company trades as an autonomous unit. (Quoted on the London Stock Exchange, in the FTSE 100). I contacted via e-mail many companies in my search for suitable material. I decided to choose Safeway Plc because I believe it to be the basis for an interesting case study. Sole trader Tourist shop The sole trader investigated was a souvenir shop at West End London. This shop was a total of 100m2 and is located next to Sounds Bar in Charring Cross, and sells all type of goods, which the customers can take back to their own country for a remembrance.
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This organisation deals with problems in their first stage to prevent them from escalating. The main representatives of the trade union will negotiate with the employers of a business if employees are not happy with a specific thing. A trade union supports their members financially if there is a strike and legally if they wish to pursue things further through the courts. Trade unions can also help employees with the following issues: Pay, working conditions, pension issue, health and safety, training, holiday, redundancy and hours of work. Employments Tribunals Employment tribunals are less professional courts that will hear the claims of disputes between employees and employers.
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And, as it can be done in front of the customer it will show them that NEXT employees are willing to take the extra step by helping their buyers as much as they can. The telephone can also be used within a NEXT store. For example: if a customer is asking for a discount on a certain product because it is damaged the customer service employee can contact the manager by telephone to discuss whether to reduce the price and by how much.
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It is for this reason as to why employees take interest in the profitability and success of their business. Also, if an employee?s business is unsuccessful, some may have to be made redundant. Job sustainability is of very high importance to most employees and will do everything their power to make sure that they are not made redundant and they therefore must try harder to keep their job. In addition, employees expect respect and truthful, effective communication to come from their managers- if an employee does not receive this, an employee may feel unnecessary, unwanted or an outsider from what should be a very strong team within Coca Cola Wakefield.
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Organisational Structures: An organisational Structure arranges such tasks as supervision, coordination and allocation. These structures make the business much more ordered and simpler to follow as every employee knows their place and responsibility to the business. Organisational structures are commonly drawn on an organisational chart. Organisational Structures also coordinate, control and help motivate employees toward the organization's goals. The most common business structures include functional, divisional, matrix, hierarchical and horizontal. Hierarchical Structures- A hierarchical structure, or hierarchy, is a type of structure common with most large businesses as it can take into account the chain of command from the managers right to the subordinates The structure is usually visually represented as a pyramid as there are usually few employers at the top and many employees at the foundation.
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Your business name is not allowed to be the same or too similar to that of another business. If this name does conflict the business of another owner, you could face legal action from the owner of the other business. Check phone books, trade journals and magazines to ensure against any clashes. Also check records of the National Business Register. If you yourself cannot be sure that you have checked all names similar to your own, contact a solicitor. A solicitor will make all necessary checks and also make sure that no business in the future will not conflict your business by trading under a name that is the same or too similar.
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(10) (18) – – – Profit for the financial year attributable to equity holders of the parent (£m) 1,570 1,892 2,124 2,1333 2,327 Underlying profit before tax5 (£m) 2,277 2,545 2,846 3,124 3,395 Enterprise value7 (£m) 30,841 40,469 37,656 35,907 41,442 Basic earnings per share8 20.20p 23.61p 26.95p 27.14p3 29.33p Diluted earnings per share8 19.92p 23.31p 26.61p 26.96p3 29.19p Dividend per share9 8.63p 9.64p 10.90p 11.96p 13.05p Return on shareholders' funds10 24.9% 26.7% 25.1% 23.5%3 23.0% Return on capital employed11 12.7% 12.6%16 12.7%17 12.8%20 12.1% Group statistics Number of stores 2,672 3,263 3,751 4,332 4,881 Total sales area – 000 sq ft12 55,215 68,189 76,338 88,451 93,985 Average employees 368,213 413,061 444,127 468,508 472,094 Average full–time equivalent employees
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The NSPCC has an aim of survival. This is because the charity does not want to make profit; it just wants to continue to exist. Break ? Even Breaking even is a method of survival. This is where a business aims to make enough money to cover the total costs. So the business does not make a loss, neither does it make a profit. Again the NSPCC is an example of a business which employs this aim. The charity aims to break-even so it can at least cover all costs then everything else it gives away.
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