Study On Different Company Types Business Essay

A Sole Trader business exists amidst other businesses in a society. A Sole Investor is somebody who owns and manages his/her own business, therefore profits earned from the business goes to who owns the business. Sole Trader business also contains business like beauty products, hairdressing and fingernails or toenails, plumbing and photography enthusiasts. Sole trader business are cheap and easy to create also it's private. Single dealers are their own owners so they don't really any different legal existence. Endless responsibility is when the owners of the sole trader business need to pay their debt with the amount of money they've earned. The purpose of a sole investor is to provide services or sell/produce products.

Advantages:

Can choose time of work

Can make your own decisions

All the revenue made is yours

Can claim expenses and certain costs against income tax

Disadvantages:

Can't have a sickness pay

Can't have a established holiday pay

Time eating accounting is done within your own free time

Continuity of work

http://www. bbc. co. uk/schools/gcsebitesize/business/aims/partnershipsrev1. shtml

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Partnership

A Partnership is another type of business business in a society which involves a planned agreement or romantic relationship between several people. If several people decide to open a company together, a deal called deed of relationship is normally used. This states the kind of collaboration it is, how much assets each person has contributed, and exactly how profits and loss will be shared. Typical examples of experts who may get into partnership collectively are doctors, dentists and solicitors. They can benefit from shared expertise, but like the sole trader, have unlimited liability. A relationship can also have a sleeping partner this person commit the business but does not have dealings in your day to day working of the enterprise. The goal of a Relationship is to produce a profit and to provide services or sell/produce products.

Advantages:

Partnerships are not too difficult to establish. One of these would have the skill to raise funds

The income that the business makes flow immediately through the companions' personal tax returns

You can promote out the tasks between the companions. Which means that no person is in charge of running all of the business.

Partnerships provide moral support and will allow for more creative brainstorms

Disadvantages:

Partners may have different visions or goals for the business

There may be unequal determination in terms of time and finances

There may also be personal disputes

Each partner can also be liable for debts incurred, decisions made, and activities used by the other spouse or partners

At time, there most definitely will be disagreements in general management plans, operational methods, and future eyesight for the business

You may face difficulty in getting investors

http://www. bbc. co. uk/schools/gcsebitesize/business/aims/partnershipsrev2. shtml

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Charity

A charity can be an organization which allows one group to help another group, whether it's people, animals or nature. Lots of the best-known charities were create by people who believed passionate about a cause that they thought was wrong or avoidable. A charity is a specific kind of voluntary business - one which takes a distinctive legal form and has a particular tax position. Charities can be planned in a number of various ways - they could be an unincorporated connection, a trust or a corporation limited by warrant. Types of charities are Christian Aid, British Red Combination and Greenpeace. The purpose of a Charity is to help provide resources for a specific cause.

Advantages:

They don't as a rule have to pay income/ firm tax, capital increases tax, stamp responsibility, and items to charities are free from inheritance tax

They need not pay only 20% of normal business rates on the structures they use and occupy to further their purpose

They can get special VAT treatment in some circumstances

They can officially represent and help meet the needs of the community

Charities are often able to increase funds from the general public, grant making trusts and municipality easier than non charitable bodies

Disadvantages:

Charities must follow with charities legislation

Charity trustees may well not generally benefit privately, whether through receipt of an income or of gains or otherwise

Personal responsibility of charity trustees for misuse of funds

Charities must produce an gross annual report and gross annual return

http://media. bbc. co. uk/cbbcnews/hi/newsid_4710000/newsid_4710300/4710352. stm

http://www. drlwilson. com/articles/what_is_charity. htm

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Voluntary Organizations

A Voluntary Firm is any business that uses the recruiting of volunteers for obtaining its main goal. Voluntary Group is a 'not-for-profit' firm because they use their income to help those in need. Voluntary Organizations are provided in areas such as environmental, global development and community health care. Examples of voluntary organizations are Scouts, National Trust and Girl Guides. The purpose of a Voluntary Group is to give a service to those in need.

BTEC First Business by Carol Carysforth and Mike Neild

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Ltd (Private Limited Company)

A private limited company is a company that is arranged to give its owners limited responsibility. The company is out there in their own privileges; this implies the budget from the business are different from the non-public finances with their owners. The owners of the company each own part of the business this makes the owners shareholders of the company. Private limited companies are usually family concerns or were firstly so. This type of business is often chosen when a sole trader would like to broaden and keep control of a company. Ltd companies have emerged as firm projects by banking institutions and customers. The firms are run by directors and shareholders. Types of Ltd companies are Virgin and Clarks. The purpose of an Ltd is to increase profit also to expand the business.

Advantages:

The company has a legal presence distinct from management and its members

The company's name is protected

Approved company income plots usually provide better benefits than those paid under contracts with the self-employed and those in non-pensionable employment

Disadvantages:

They have to pay Corporation tax together with any existing taxes

Wanted reap the benefits of economies of scale

Lack of capital anticipated to no talk about issue to the overall public

BTEC First Business by Carol Carysforth and Mike Neild

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Franchises

This kind of business starts by using the name of your popular/well known business. A franchise can be an agreement or license between two parties which gives a person or group of men and women (the franchisee) the privileges to market something or service using the hallmark of another business (the franchisor). The Franchisor gives the Franchisee help and support to perform their business. Examples are KFC and Prontoprint. The goal of Franchise is to produce a gain using the name of a favorite business and its own resources.

Advantages:

Training and help about how to perform or open up the is provided

Risks associated with the business are smaller than most other businesses

You don't need to have experience to open up or run the business

The finance is easily reachable and it's at affordable rates

The business is a successful concept and has already been set up

The items needed are available at discount prices

Disadvantages:

You have to work long hours

The franchisor has control over the franchisee and can want and need high standards

Franchisors usually want franchisees to follow their procedures manual to a tee in order to ensure reliability

The franchisor might go out of business

All income are distributed to the franchisor

Other franchisees could give the brand a poor reputation

BTEC First Business by Carol Carysforth and Mike Neild

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PLC (Public Limited Company)

Public Small Company (PLC) is a type of business which is permitted to offer its shares to the public. All general public limited companies names result in 'plc'. PLC companies will need to have at least two shareholders, two directors and a tuned secretary. A People limited Company differs from an exclusive Limited company because its shares can be bought and sold by the general public. Directors are paid to perform the company and may or might not exactly own shares of the business. To be a PLC 50K share capital is necessary. The goal of PLC is to generate enough money to broaden and develop into an organization.

Advantages:

Large plc's could find it much easier to borrow from banks

Shares can be advertised

Benefit from economies of scale

Cheaper borrowing and mass purchasing

Shares can be sold through the stock exchange

Disadvantages:

Risk of takeover by rival companies who've bought stocks in the

company(E. g. Kraft seeking to dominate Cadbury chocolate)

Going community can be expensive

Some plc's can grow so large that they could become difficult to

manage effectively

BTEC First Business by Carol Carysforth and Mike Neild

http://www. businesslink. gov. uk/bdotg/action/detail?type=RESOURCES&itemId=1073789599

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Co-operatives

Co-operatives are a number of individuals or businesses work together to achieve a standard point. The business enterprise is jointly owned and run by the staff. All profits created from the business are shared and the owners make blended decisions about how the business should run. Self-help, self-responsibility, democracy, equality and solidarity are the worth that Cooperatives are based on. The goal of the Co-operatives is to provide their members in a wise and effective manner and help them generate income and possibly income.

Advantages:

Usually more steady, caring and responsible employers

Can give job satisfaction and variety

Encourages strong work commitments

More dependable to customers and the community within the business

Disadvantages:

There could be discord between members

Longer decision-making process

Extensive record keeping necessary

Employment benefits often can't match those made available from other business types

Less reason to invest additional capital

They can limit the selection of outside finance

Participation of users required for success

http://kribhco. net/british/what_coop. htm

BTEC First Business by Carol Carysforth and Mike Neild

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Public Sector

Public Sector is a part of the public which is managed by the government. THE GENERAL PUBLIC Sector is possessed by the sate and many services cost-free and other at or below a cost. The purpose of a general public Sector is to provide a quality service to the city. The aim of the general public Sector is to improve service condition also to operate within budget. THE GENERAL PUBLIC Sector includes the government departments, local councils, NHS nursing homes and state academic institutions. Examples of Consumer Sector Company are London Underground, Law enforcement and Country wide Health Service. The goal of a Consumer Sector is to provide goods and/or service also to provide value for money.

Advantages:

The job security is very limited, it's difficult to get fired

Generous benefits

More relaxed atmosphere

Disadvantages:

Fewer positions available

Lower pay

Less flexibility

BTEC First Business by Carol Carysforth and Mike Neild

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