P1 Describe The Type Of Business Unit 1

Topics: Corporation, Limited company, Types of companies Pages: 2 (481 words) Published: March 23, 2015
P1 Describe the type of business, purpose and ownership of two contrasting businesses.

In this task I will be stating the purposes of two of the contrasting businesses which are a LTD and a PLC. (New Forest Ice Cream and Thorpe Park) First of all I will look at the businesses individually and taking into account which type of business it is and its objectives. There are two main types of a limited company;

A public limited company, (PLC) is normally a big, well-known business. This could be a business who manufactures or a chain of retailers with links in the majority of city centres. Shares trade on the stock exchange. A private limited company, (LTD) is normally a quite small business such as a self-reliant retailer in a small town. Shares do not trade on the stock exchange. There are business causes such as supplying goods to the stores or online shops to provide products for the customers and also provide a service, and also to help improve he local community with more jobs which can also be beneficial because of how people get the jobs and they get the money to spend in the businesses. New Forest Ice Cream

New Forest Ice Cream is an LTD company.
Limited companies must register registrar of companies at Companies House and gain a certificate of incorporation before it can trade. Doing this can allow legal transactions from the company to customers. If the company did not have a certificate of incorporation then the company would be dealing with illegal transactions. An LTD can be owned between 1 and 50 shareholders and is a bit more complicated to put up. An LTD can only have 2 leaders which is a minimum amount. Shareholders can have a huge impact on the way the business works out, they can significantly help with the loans the business has but also the business may take a hit on the long run, for example if the company was doing extremely well and had 35-45 shareholders then depending on how much the shareholders invested into the company the LTD...
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