...AO1 - Type of Business Ownership Introduction There are many different types of ownerships that can indicate the size of the business. Businesses can range from small, being a one person business or a larger business such as a supermarket that have hundreds of employees. In this report I am going to discuss and research the different forms of business ownerships and the legal requirements that are required. I will be talking about what each type of owner ship in tales and what the advantages and disadvantages of each are. The main types of ownerships are: * Sole trader * Partnership * Private Limited Company * Public Limited Company * Franchise * Working Co-operative I am going to research the different types of ownerships using the internet and text books to gain an understanding of what each type of ownership consists of. This will therefore help me gain a wider and deeper knowledge and understanding of aspects of each ownership, for example the advantages and disadvantages. Sole trader A sole trader is the smallest and simplest form of business ownership and consists of very few legal requirements which is why it is one of the most common within the UK with over 3 million business running. Sole traders are businesses that are started by only one individual and they will be one legal owner of the business, however they may employee people to work for them. Being the only legal owner give great amount of freedom, they will be their own boss...
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...Where, when, what, how much, how…etc. Mostly concern with three decisions: _______decisions, _________ decisions and _________decisions. Chapter Outline 1.1 The Four Types of Firms 1.2 Ownership Versus Control of Corporations 1.3 The Stock Market 3 1.1 The Four Types of Firms Sole Proprietorship Partnership Limited Liability Company Corporation 4 Legal forms of business organisation Sole proprietorship A business owned by a single individual, unlimited liability, limited access to capital, lack of continuity, constraints of various skills. Advantages Easy to create Disadvantages Unlimited personal liability Limited life 5 Legal forms of business organisation Partnership An association of two or more individuals joining together as co-owners to operate a business for profit, joint responsibility, involves partnership agreement, better access of capital/skills, continuity of business? partners are personally liable for all of the firm’s debts. A lender can require any partner to repay all of the firm’s outstanding debts. partnership ends with the death or withdrawal of any single partner. All The 6 1.1 The Four Types of Firms (cont'd) Partnership Limited Partnership has two types of owners. Partners General Have the same rights and liability as partners in a “regular” partnership (personally liable for firm’s debt obligations.) Typically run...
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...INTRODUCTION TO FINANCIAL O UC O O C INFORMATION LECTURE 1 LEARNING OBJECTIVES Understand the key differences between economics, accounting and finance Understand why financial information is important List the main users of accounting information and understand their information needs Distinguish between management accounting and financial accounting List the main types of business ownership and outline their characteristics Summarize the advantages and disadvantages of each type of business ownership p 2 Panagiotis Dontis Charitos WBS, 2013-14 IN TODAY’S LECTURE... Topics Differences between economics, accounting and finance Importance of financial information Users of accounting information and their information needs Differences between management accounting and financial accounting i Main types of business ownership Characteristics Advantages vs. disadvantages 3 Panagiotis Dontis Charitos WBS, 2013-14 ECONOMICS - FINANCE – ACCOUNTING Economics is a social science Study the production, consumption and distribution of services or goods Explain how economies work and how do different economies interact Finance is a subset/tool of economics that studies the financial markets Personal finance, corporate finance, state finance Accounting is an essential part of finance and economics Precise recording, reporting and assessment of financial deals and transactions of a business Preparation of statements or declarations concerning assets, liabilities...
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...| Centre Number: 23168 | BTEC Business | | Learner No: | | UNIT NUMBER AND TITLE: | Unit 1: Business Purposes | ISSUE DATE: | | HAND IN DATE: | | RESUBMISSION DATE: | | ASSESSOR: | | Aims The aim of this unit is to enable you to understand the nature of business organisations and the business environment in which they operate. You will do this by looking at the range of organisations that exist locally, regionally and nationally and by considering the business framework in which they operate Work covered You will: * Understand the purpose and ownership of business * Understand the business context in which organisations operate Understand the purpose and ownership of business Purpose: supply of goods and services e.g. at a profit, free, at cost, for sale below cost Ownership: sole trader; partnership; limited companies (private [ltd], public [plc]); charity; voluntary organisations; co-operatives; government Size: small; medium; large Scale: local; regional; national; European and global organisations Classification: primary (e.g. farming, forestry, fishing, extraction/mining); secondary (e.g. manufacturing, engineering, construction); tertiary (e.g. private service industries, local and national public services, voluntary/not-for-profit services) Understand the business context in which organisations operate Role of government: European; national; local; growth, full employment; inflation/deflation; surpluses;...
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... 1.0 introduction I am writing this report as I am investigating three different types of businesses within my local area. In this report I will be reflecting on why the businesses are the chosen types of ownerships. Furthermore, I will be discussing the businesses which are of the following types; PLC, Ltd and Partnership. 2.0 findings The three businesses I am investigating will be Tesco PLC, Ford Motor Company Limited and The John Lewis Partnership. I have chosen these three businesses because they all have different ownerships and they give me a wider range to research as I discuss why different ownerships may be better for the type of business. 2.1 Tesco The first business I have chosen is Tesco. Tesco PLC is multinational grocery and general merchandise retailer. It is the second- largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia, Europe and North America and is the grocery market leader in the UK. In the UK it has a market share of around 30%. Tesco have a big advantage as they are operating as a PLC because advantages of a Public Limited Company are that shares can be advertised, shares can also be sold through the stock exchange, large plc's may find it easier to borrow from banks and shareholders have limited liability. In my opinion the most suitable type of ownership would be a PLC because a Public Limited Company's stock can be acquired by anyone and...
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...Types of Legal Ownership Amanada Moore June 8, 2016 Introduction to Business in a Technology World Heather Montgomery Argosy University Types of Legal Ownership Ownership Structures | Sole Proprietor | General Partnership | Limited Liability Company (LLC) | Corporation | Number of Owners | One | Two or more | One or more | Multiple | Formation Difficulty | Low | Low | Medium | Medium/High | Liability | Sole proprietor has unlimited liability. | Partners have unlimited liability. | Members aren’t typically liable for the debts of the LLC. | Officers/shareholders are not typically responsible for the debts of the corporation. | Operational Requirements | Relatively few legal requirements. | There are relatively few legal requirements. | Some formal requirements, but less formal than corporations. | Formal board of directors, annual meetings, and annual reporting required. | Management | Sole proprietor has full control of management and operations. | Typically each partner has an equal voice unless otherwise arranged. | Members have an operating agreement that outlines management. | Managed by the directors, who are elected by the shareholders. | Federal Taxation | Not a taxable entity. The sole proprietor pays all taxes. | It is not a taxable entity. Each partner pays tax on his/her share of income and can deduct losses against other sources of income. | Depending on structure, there is no tax at the entity level. Income/loss is passed through to members...
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...DISSERTATION PROPOSAL The Impact of Foreign Share Ownership on Financial Performance in Australia Word Count: 2,696 Table of Contents 1. Introduction ........................................................................................................................ 3 2. Literature Review ............................................................................................................... 5 2.1 2.2 3. 4. Corporate Governance in Australia ............................................................................. 5 Ownership Structure and Financial Performance........................................................ 6 Hypothesis .......................................................................................................................... 8 Methodology....................................................................................................................... 8 4.1 4.2 Model Design .............................................................................................................. 9 Sample ....................................................................................................................... 10 5. 6. References ........................................................................................................................ 11 Appendix .......................................................................................................................... 14 6.1 6.2 Structure .................
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...Firearm Ownership in The United States COM 150 Firearm Ownership in The United States “A well-regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.” The Second Amendment of the United States Constitution has given Americans the right to firearm ownership since 1791. The exercising of this right has been part of how our society has been formed. Gun ownership in America has affected our economy, lifestyle, and politics throughout our history and continues to be a hot topic of discussion today. The economic impact of firearm ownership in America is not a defining one. This industry does not make or break our economy, but the contributions the industry and related industries make can be seen in the form of jobs and sales of goods. Companies who make items for the industry are located throughout the world and make a wide variety of products. These products include firearms, accessories, ammunition and gear. Many firearm manufacturers make accessories for their firearms to try and cash in on both markets. Some of the best-known manufactures throughout the world are Glock, Colt, Benelli, and FN Herstal. These companies not only make firearms for civilian use, they also compete for government contracts to provide weapon systems for the various militaries and police agencies worldwide. The firearm industry is one of the few industries that have grown during the most recent economic slump...
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...Unit 1 Business Environment Type, sector, purpose and ownership of businesses There are different types, purposes and ownership of businesses such as; Charity or not for profit organisations, private limited company and international/global. Organisations operating in the public sector i.e. for benefit of everyone and not making a profit. Organisations operating in private sector are trying to make a profit such as Tesco, M&S, ALDI etc. even if they are called a public limited company. Charity does not make a profit. Their ownership is by a ‘board of trustees’. I have chosen Marks and Spencer’s for an international/ global organisation. This organisation is an international organisation as their products are sold through our international stores across Europe, the Middle East and Asia. Marks and Spencer’s operate in a private sector and the work they do and the products they sell is to make a profit for themselves. The industrial sector for Marks and Spencer’s is tertiary as this group is involved in the delivery and sale of goods. They take the products from the factories after the products are manufactured and sell them at a price that they will get profit off of. The purpose of this organisation is the supply of products. This is selling products at a certain price to gain profit. The ownership of Marks and Spencer’s is public limited company as it is a large well-known business. It is a chain of retailers with branches in most city centres. Shares...
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...Debt. It would be uncomplicated to classify the sources as internal and external. Internal sources of finance Internal sources of finance are the funds readily available within the organization. Internal sources of finance consist of: * Personal savings * Retained profits * Working capital * Sale of fixed assets Personal savings This is the amount of personal money an owner, partner or shareholder of a business has at his disposal to do whatever he wants. When a business seeks to borrow the personal money of a shareholder, partner or owner for a business’s financial needs the source of finance is known as personal savings. Retained profits Retained profits are the undistributed profits of a company. Not all the profits made by a company are distributed as dividends to its shareholders. The remainder of the profits after all payments is made for a trading year is known as retained profits. This remainder of finance is saved by the business as a back-up in times of financial needs and maybe used later for a company’s development or expansion. Retained profits are a very valuable no-cost source of finance. Working capital Working capital refers to the sum of money that a business uses for its daily...
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...from a single market stall to become an international multi-channel retailer. (M&S, 2013) Marks and Spencer is a major British retailer which was founded in 1884 and operates 766 owned and franchised stores in the United Kingdom; and 418 owned and franchised stores in 51 territories in Europe, the Middle East, North Africa, and Asia. Type of business M&S is an international business because it is located in various other countries with the United Kingdom and 418 owned and franchised stores in 51 territories in Europe, the Middle East, North Africa, and Asia. M&S is in the private sector organisation because it is part of the national economy made up of private enterprises. It includes the personal sector (households) and corporate sector (companies), and is responsible for allocating most of the resources within an economy. See also public sector (business dictionary, 2013) M&s is a large size business because there are more than 250 employees, M&S has up to 82,000 employees and the majority of the people are in the UK. M&s is in the tertiary sector because they are providing services to individuals and business an example of the type of service M&S would provide is they could provide fresh lingerie this would include: • Transporting the lingerie • Selling the lingerie in the stores • Advertising the lingerie (they could use manikins to advertise) (John Bevan et al 2010) Purpose M&S is main purpose is to make as much profit as possible, and to make sure customer...
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...Title: Ownership Forms of Health Care Organizations Class: MHA612: Financial & Managerial Accounting There are many common ownership forms that are available to form a health care organization. So when asked to advise fifty doctors on what common ownerships forms there are you must first think of what organization of health care you plan to open. Working on the capacity as an external consultant in the field is common to give guidance and provide feedback to any ideas that can help improve the way to do things. To have a better outlook on how things can be done 50 doctors have gathered together to come up with ideas on developing ownership form for their organization. The job is to oversee the ideas and ensure them that the ideas they are coming up with are practical ideas that shows a good understanding of the various common ownership forms that they can use as well as give them a detail briefing of the common ones they shouldn’t use. There are four main types of organizations they are Not for profit business oriented organizations, for profit health entities which include Investors owned, professional corporations/ professional associations, sole proprietorships, limited partnerships and limited liability partnerships and limited liability companies. Governmental HCOs and Non-governmental nonprofit HCOs. These four main types of firms differ in terms of ownership structures. They are different HCOs that require slightly different sets of financial statements. Health...
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...invest in a company to obtain a certain required rate of return RRI after long period of time. Example: Let us suppose that venture capitalist want to invest $10mm in company X that would not require any additional capital through 6 years and the company expect to earn $9mm dollar in year 6, and this company has commanding price / earnings (PER) equal to 22. The venture capitalist expect 60% required rate of return (RRI). Fact summary Required rate of return RRI: Investment: Term: Year 6 net income: Year 6 PER: 60% $10mm 6 $9mm 22 Required future value (investment) = (1 + IRR) years x (investment) = (1 + .6)6 x ($10mm) = $167.8 mm So the venture capitalist’s stocks value should be equal $167.8mm in year 6 to achieve 60% annual return. Total Terminal Value = PER x Terminal Net Income = 22 x $9mm = $198mm after 6 years the company as whole would worth $198mm. Final ownership required = ������������������������������������������������ ������������������������������������ ������������������������������ ������������������������������������������������������������ ������������������������������ ������������������������������������������������ ������������������������������ Final ownership required = $167.8mm / $198mm = 84.34%. The required percent ownership after 6 years should be 84.34% “and it is equal to beginning percent ownership because the company doesn’t require any additional capital through 6 years” Computing Shares to Issue and Share Price Usually Companies Issue additional...
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...Business Ownership Name: ACC/561 August 6, 2012 Instructor: Business Ownership The biggest decision an individual can face is with when starting a business is selecting the type of business he has interest in. Will his business be a sole proprietorship, a partnership, corporation, or limited liability company. Each of the four business types has many advantages and disadvantages regarding taxes and liability. The individual who wants to start-up the business should take into consideration many factors concerning cost, control, and the amount of risk he is willing to assume. Sole Proprietorship is the most common type of business. Sole proprietorship is the easiest type of ownership and is the easiest to enter and leave. The benefit to a sole proprietorship is cost of start-up is low, owner controlled, and profits go to the owner. The tax advantages are the individual is not paying separate from his personal taxes the taxes are generally lower for the sole proprietor. The disadvantages of a sole proprietorship are limitless liability, if the business has one owner the business could close if the owner passed away, and it may be hard to raise capital. If more than one individual join to start up a business, the advantages and disadvantages increase. ...
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...governance in the big businesses (Memili, 2011; Culasso et al., 2012). There are still relatively less researches talking about corporate governance’s implementation in SMEs comparing to in the big ones (Johannison dan Huse, 2000; van den Heuvel et al., 2006). Therefore, this research aims to study the implementations of corporate governance in SMEs, and specifically comparing those implementations in family business and in nonfamily business. Aspects that would be used in analyzing the implementation are five aspects contained in Indonesia Code of Good Corporate Governance 2006, which are transparency, accountability, responsibility, independency, and fairness. To strengthen the analysis, basic characteristics of both type of business would be also used, which are ownership structure, business structure, rewards, returns, and career-path. The result shows that both businesses have already applied...
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