Organisational aims and objectives

Topics: Corporation, Limited liability partnership, Limited liability company Pages: 11 (3848 words) Published: November 12, 2013

Organisational and Financial characteristics of different types of Travel and Tourism organisations

~ Information Pack ~
Sophie Harpham

~ Contents Page ~

Page

Organisational characteristics
4-5
Business structure and control
6
Business organisation
7
Documentation for business set up

Financial characteristics
9
Distribution of profits
10-12
Sources of finance
12
Supplying products and services
12-13
Financial accountability
13
Inland revenue
13-14
Customs
14
Contribution to global and UK economy
15-16
Visit Britain Case Study
17-18
Hays Travel Case Study

*Organisational and financial factors are both interdependent*

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Organisational Characteristics
~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Business structure and control
Organisational characteristics include the way that a business is structured, how a business is controlled and also the liability they hold for if they were to go into debt. There are; sole traders, partnerships, limited companies, board of directors, charities and co-operatives to take into consideration when looking at organisational characteristics. The structure and control of sole traders is the most simplistic as they have very few regulations that they need to adhere to. The sole trader is liable for all debts as they are solely on their own within their business however they are in complete control over their business and they receive all the profits after tax. It is in most cases difficult for sole traders to raise capital (raise money to invest in further business opportunities). The structure and control of partnerships is mostly shared between two people, if not more, and they share the liability of any debt which they may fall into however the partners can limit their liability of the debt by setting up a limited liability partnership so that their liability is capped. Generally, the partners share the control and the profits which their business may make. There is also no requirements for partnerships to be registered at Companies House which is the agency of the DTI (Department of Trade and Industry) and is responsible for registering companies within the UK. The structure and control of limited companies is a lot stricter than other business types as there are more regulations which govern the way that they are ran. Limited companies have the possibility of raising capital, limiting risks and issuing shares however their accounts must be filed at Companies House. The control over limited companies is in the board of directors’ and shareholders’ hands and all management staffs’ duties is to ensure that they are responsible to the board of directors and the shareholders throughout every decision which they make during their career.

The board of directors has one member which is the appointed chairman and the board itself is a group of people whom oversee every running of a particular organisation. The group is nominated by the shareholders of that particular organisation.Public companies often have executive directors which are generally full time employees of a company and whom have management responsibilities and also non-executive directors which is someone who is chosen to attend a certain amount of meetings and contribute towards the making of decisions. They are genuinely chosen based upon their experience and their skills and they are paid an annual fee rather than a monthly salary. {Board of trustees/board of governors are the same as a board of directors} Charities generally have trustees running and operating them. The trustees have the responsibility of overseeing all strategies and the direction of where the charity is going to go in terms of growing and expanding. The structure and control of co-operatives is that they’re representatively controlled by their members however they are also liable to all debt. Co-operatives main aim is to generally support certain communities and campaign for a fairer...
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