Jordan Spowart

Topics: Franchising, Limited company, Corporation Pages: 5 (1843 words) Published: December 11, 2012
M&S (Mark’s and Spencer’s) is one of the UK’s leading retailers, with of 21 million people visiting the stores each week. They employ over 78,000 people in UK, and have over 700 UK stores. JKNE (Jonny Kennedy North East) is a charity based in the North East of England, created to follow Jonny’s wishes by helping other sufferers of Epidermoysis Bullosa. M&S is a PLC (Public Limited Company) where anyone can buy a share and the company doesn’t have a say in who gets the shares. Whereas JKNE is Charity where people volunteer and don’t get paid for their work. M&S strive to make a profit and JKNE want money but they don’t need profit as their stock is given to them as a charity so they don’t make a profit as they give the money away to a good cause. An advantage of a PLC is that huge amounts of can be raised from selling the shares and the disadvantage of a PLC is that there are disagreements to decisions on the business also that they can’t say no if someone wants to buy a share. An advantage of a charity is that you don’t have to pay for the workers as they volunteer and a disadvantage is that not many people volunteer to work so they might be short of staff and have to close for the day. There is limited liablilty in a plc. (which means that the shareholders can only lose what they have put into the business, not their personal assets). Here are some other examples of ownership and their advantages and disadvantages:- A LTD (Private Limited Company) is a company that sells shares but unlike a PLC(sells shares to anyone) it doesn’t sell shares to anyone the original owners get to choose who gets the shares and how they will benefit them the most. An advantage is that there is limited liability to the shareholders (which means that they are not responsibly for the debts of the organization just responsible for the capital that they put into the business therefore, they can only lose what they have invested , not their personal assets) and a disadvantage is that you have to have at least one other shareholder which means that the profits have to be shared into dividends to the shareholders. Some examples of a LTD are Warburton’s ltd, Virgin ltd. and New Look Retailers ltd. A Partnership involves two or more people (but no more than 20, with some exceptions) going into businesses together in order to make a profit. Each partner jointly owns all the business assets and liabilities. It's vital that each partner knows their rights, responsibilities and obligations. An advantage is that you don’t have to pay all the bills yourself, another is that the business can continue of someone leaves also all the profit and loss is equally shared between the owners. A disadvantage of a partnership is that business are jointly liable for the actions of other partners (which means that if someone goes financially wrong in the business the other partners will have to help and pay), another disadvantage is that all the profits are shared and disagreements may occur in the business. A partnership is for the long term, and expectations and situations change, which can lead to the partnership splitting up. Examples of a partnership could be a restaurant, accounting firm or a beauty salon. A Government owned business also known as a state-owned enterprise (SOE) are owned in part by a government body, these companies are truly public corporations which have a government entity as one of their shareholders. An advantage of this that the money is supplied by the government for the business, but a disadvantage is that things can be changed at the last minute as the company relies entirely on funding. An example of a government owned business is a Post Office or the oyal Mail. A Sole Trader is a business that is owned and controlled by one person. It may have one or more employees, is the most common form of ownership in the UK. Sole traders do not have a separate legal existence from their owner. As a result, the owners are personally liable...
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