walkers

Topics: Corporation, Limited liability company, Business law Pages: 8 (2073 words) Published: October 22, 2013

TASK 1

(A). SOLE TRADER : Is a business which is owned and manages by one individual, who is self-employed and in some case employ other people on either a full time or part time basis. EDEXCEL HNC/HND BUSINESS (2009). A sole trader normally use his own personal funds/capital to start the business and he decided on types of goods or services to produce, the location, what capital or funds is required etc examples of sole traders are self employed plumbers, news agents, local shop{grocers} etc

PARTNERSHIP; is an agreement between two or more peoples to engage in a business in common with a view to profit. BPP CORE UNIT 2 BUSINESS (2009). In essence, a partnership comes into being when two or more people establish a business which they own, finance and run jointly for personal gain, irrespective of the degree of formality involved in the relationship. EDEXCEL HNC/HND BUSINESS (2009). Partnership does not have its own distinct legal personality and hence the owners, partners have unlimited personal liability both jointly and severally unless by dint of limited partnership Act 1907, a partner or partners has limited liability. Examples of partnership is solicitors like Mo and Co Solicitors,

LIMITED LIABILITY COMPANY; is a business organisation consisting of two or more individuals who have agreed to embark on a business venture and who have decided to seek corporate status rather than partnership. Individuals seeking to form a company are required to file numerous documents including MEMORANDON OF ASSOCIATION, with the registrar of companies if satisfied the registrar will issue a certificated of incorporation bringing the company into legal entity. E.g. Tesco, Waitrose etc EDEXCEL HNC/HND BUSINESS (2009).

AIM AND OBJECTIVES;

The aim and objectives of most businesses is for profit marking except otherwise state like government organisation and charities. It also is conditioned in the firm’s legal structure.

SOLE TRADER; The aim and objectives of a sole trader in the first year is likely to be concerned initially with survival and with establishing a position in the market place with profitability and growth seen as a less important in the short term. EDEXCEL HNC/HND BUSINESS (2009).

PARTNERSHIP; the aim of a partnership business is common with a view to profit and as mention above in sole trader. Some objectives are Increase numbers of customers, Level of service, Employee development, Innovation in products or processes, Profit maximisation etc. BPP BUSINESS ENVIRONMENT (2010).

LIMITED LIABILITY COMPANY; Individuals agreed to embark on a business venture as mention above but as where ownership tend to be separated from control (as the company is a legal entity or meaning of the business goes). The goals of the owners (shareholders) may not always correspond with those of the directors and senior managers who run the organisation, particularly when the latter are pursuing personal goals to enhance their own organisation position, status and/or rewards. Some of their objectives are; Profitability, Market shares, Growth, Cash –flow, Return on capital employed, Sales, Customer satisfaction etc. BPP BUSINESS ENVIRONMENT (2010).

I (B) SOURCES OF FINANCE

SOLE TRADER;
1. Retained Profit; All businesses will generated money by making sales, some of this money will then be used to pay interest to the bank on its lending and to pay of the money loaned or to reinvest.

2. Owner’s Funds; Savings, additional mortgage taken on their house etc.

3. Money borrows from bank; the newsagent might get his bank to agree to let him have an overdraft some of the time to tide him over periods when he has paid for stock but not sold it to customers. BPP CORE UNIT 2 BUSINESS AND FINANCE (2002).

PARTNERSHIP
1. Government grants; some businesses are helped out with their financing by government grants especially new businesses in...
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