• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Which type of ownership should my business have?

Extracts from this document...


Which type of ownership should my business have? My idea for a business is a small-sized (perhaps medium-sized) company, which produces laptops- simply. However, our laptops are unique. They are around 8 inches wide, making them one of the smallest true laptops on the market. There are smaller so-called "laptops" but these are more like glorified PDAs (e.g. Sony Vaio VGN-U50). Our laptops are designed for travelling businessmen and school pupils, secondary school pupils in particular. Being so small, the laptop can easily fit into a school bag or briefcase, even in a handbag if needed. The main USP is its size. It is also supposed to be easily affordable, mainly for the school pupils' sake. Finally the diminutive laptop should be powerful. Many people now do lots of things on the computer, having lots of RAM-intensive programs running at the same time, and school pupils will not just use the laptop for their work, it also serves as a recreational facility- for use with games and multimedia. ...read more.


There are several advantages of the partnership type of ownership; the first one being that we can have a small number of partners/owners, in our case, 3. With 3 people (or more than 1 person) owning the person, more capital can be invested, so we can get manufacturers to produce high quality goods, instead of laptops that break easily or crash at the slightest tap. Each partner also has an evident specialist skill, for example, Osama may be good at keeping accounts and Craig may be good at persuading prospective suppliers/manufacturers, and I may be good at making things run on schedule, and actually selling the products. We could all be good website designers. We can share the work of the business between us, and if someone is ill, the routine and work will not suffer too badly. Partnerships are quite easy to set up as well, there are no complicated and pricy legal processes required to set up this type of business organisation. ...read more.


Reasons why I chose partnership type over the other ownership types: Sole owner * There are 3 owners, therefore this would not be possible * Shortage of skills and capital Private limited Company * Financial information is not private, so competitors could access the information and steal unique ideas * We need to sell shares to use as capital, but they cannot be sold to the general public- it can be difficult to find buyers. * Shareholders will expect a cut of the profits as dividends, but this can drain the company's assets * Incorporation is a long and expensive process * More complex organisational structure, whilst we are a small business Public Limited Company * Their shares can be sold to the public :)(adv.) * To become a PLC, a company must have issued at least �50,000 worth of shares * Dividends- can drain company's assets * Possible takeover bids- Other companies can buy large quantities of shares in our business, and ask other shareholders to sell their shares. When this other company gains enough shares, the ownership will change. ?? ?? ?? ?? JA ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. The type of ownership Cadbury Schweppes PLC.

    liability to the amount invested, and whilst profits are shared equally the responsibility and control of the business lies with the members of the family. The things that the Cadburys family should help towards the company were: * The family abilities to drive the business forward.

  2. Business Plan. After putting a lot of thought into what kind of business we ...

    We want them to write feedback, suggestions and complaints to tell us their views and feelings about their experience with us, this enables us to see where we are going wrong and what we need to change to ensure that it doesn't happen again.

  1. Types of business ownership, starting a business, multinationals.

    It is expensive to form a Public Limited Company Legal documents, advertisements & a document giving information for prospective buyers of shares 2. The original owners of the company may lose control Very possible in a plc because so many shares are sold to other people 3.

  2. Business Studies

    Word of mouth: - Publicity where businesses have little or no control * Place/distribution > Place concerned with the process of distribution and availability of products - Distribution channels an reasons for intermediaries > Distribution Channels are the channels by which a product is moved from place of manufacture to

  1. In this section I will explain every one the different types of business ownership. ...

    - Members cannot benefit from any profits made. - No return is permitted to members (they cannot be 'investors' and cannot partake in profits or dividends). - The need to create a separate trading subsidiary, if there is to be any non-charitable work, with additional costs involved.

  2. External influences related to Jaguar Cars and Marriot Hotels

    that the local residents will not be disturbed at any point during the day. By keeping the local residents happy it means that the Marriott will not have any complaints coming in which will lead to the increase in reputation as they are keeping all of their stakeholders happy.

  1. employemnt standard

    Always work hygienically and should follow the following procedures to avoid cross infections: * wash hand before and after every treatment * always sterilize the tools after every treatment * wash disposable gloves when handling waste * dispose material in a sealed bag * proper uniform and close toe flat

  2. Business Studies- Unit 1- Business Ownership

    This can provide a comfortable feeling of security for investors in the Company. Tax advantages for limited Companies are only taxed on their profits- this means that they are not subject to the much higher personal tax rates placed on sole traders or partnerships which can reach 40%.In the case

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work