1.1 Identify the purposes of different types of organisation.
The sole trader is a common form of business ownership and is found in a wide range of activities such as painter, plumber, cleaner. Business has only one owner who responsible for all the expenses and legal requirements. Difficult to raise finance, also owner has unlimited liability.
Partnership is a business with at least two or more owners up to twenty. Partnerships are particularly common in professional services such as solicitors accountant. Owners enjoy limited liability, share their skills, and work allowing them to raise capital more quickly than individuals.
3.Private Limited Company (LTD)
The Company is an artificial person made by law, offers limited liability. The major private limited company's restrictions are about the shares and shareholders. Shares cannot be sold or transferred to the public. Shareholders enjoy priority against others in buying shares within the company.
Example J. Whitaker & Sons Ltd
The co-operative is a group of people working together, making decisions together to reach common goals. Co-operative aims is not only that to make more profit for shareholders, also to offer better value and quality. Cooperatives are dedicated to the values of openness, and social responsibility.
The person taking out the franchise pay a sum of money as capital and hire or buy necessary equipment from the franchising company. The company selling the franchise is called the franchisor and a person who paying for the franchise is called the franchisee. The franchise agreed the requirements and regulations given by franchisor regarding the business. Mc Donald's e.t.c
6. Public Limited Company
Most common name is the PLC. Company which has offered shares to the general public and has limited liability. Two or more people are required to form...