Study On Different Organization Types Business Essay

Study On Different Organization Types contrast EssayA furbish up Trader lineage exists amongst new(prenominal) traffices in a society. A Sole Trader is a person that owns and controls his/her own line of products, therefore receiptss earned from the business goes to the owner of the business. Sole Trader business alike includes business like cosmetics, hairdressing and nails, plumbing and photographers. Sole trader business argon cheap and simplified to representup also its private. Sole traders atomic number 18 their own owners so they dont each separate legal existence. unconditi unmatchabled liability is when the owners of a sole trader business remove to endure their debts with the money theyve earned. The enjoyment of a sole trader is to stick out swear outs or sell/ arrive at products.AdvantagesCan choose hours of wrickCan authorize your own decisions all the profit made is yoursCan claim expenses and certain cost against income taxDisadvantagesCant fill a sickness payCant have a set holiday payTime consuming accounting is done in your own free cartridge holderContinuity of representhttp//www.bbc.co.uk/schools/gcsebitesize/business/aims/ bankruptnershipsrev1.shtmlhttp//www.answers.com/PartnershipA Partnership is an different face of business presidency in a society which involves a planned agreement or relationship between deuce or more(prenominal) people. If two or more people decide to open a business unitedly, a contract called deed of partnership is normally drawn up. This states the type of partnership it is, how much assets to each one person has contributed, and how profits and losses will be sh ard. Typical examples of experts who may go into partnership together are doctors, dentists and solicitors. They can benefit from shared expertise, but like the sole trader, have unexpressage liability. A partnership can also have a sleeping partner this person invest the business but does not have dealings in the day to day r unning of the enterprise. The purpose of a Partnership is to wee-wee a profit and to provide services or sell/produce products.AdvantagesPartnerships are relatively easy to establish. One of them could have the skill to raise cashThe profits that the business makes function directly through the partners personal tax returnsYou can share out the responsibilities between the partners. This factor that no single person is responsible for running all of the business.Partnerships provide moral support and will get for more creative brainstormsDisadvantagesPartners may have different visions or goals for the businessThere may be unequal commitment in terms of time and financesThere may also be personal disputesEach partner may also be liable for debts incurred, decisions made, and actions taken by the other partner or partnersAt some time, there most certainly will be disagreements in extinguishment plans, operational procedures, and future vision for the businessYou may encounter d ifficulty in attracting investorshttp//www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershipsrev2.shtmlhttp//www.answers.com/CharityA charity is an organization that allows one groupto help another group, whether its people, animals or nature. many another(prenominal) of the best-known charities were set up by people who felt passionate about a assist that they believed was wrong or preventable. A charity is a particular type of voluntary organization one that takes a distinctive legal form and has a special tax status. Charities can be create in a number of different ways they can be an unincorporated association, a conceive or a company limited by guarantee. Examples of charities are Christian Aid, British Red get across and Greenpeace. The purpose of a Charity is to help provide resources for a particular cause.AdvantagesThey dont normally have to pay income/ corporation tax, capital gains tax, stamp duty, and gifts to charities are free of inheritance taxThey dont have to pay no more than 20% of normal business rates on the buildings they use and occupy to further their purposeThey can get special VAT treatment in some circumstancesThey can formally represent and help to meet the needs of the communityCharities are oft able to raise funds from the public, grant making trusts and local g everywherenment more easily than non charitable bodiesDisadvantagesCharities must obey with charities principleCharity trustees may not generally benefit personally, whether through receipt of a salary or of profits or otherwisePersonal responsibility of charity trustees for misuse of fundsCharities must produce an annual report and annual returnhttp//news.bbc.co.uk/cbbcnews/hi/newsid_4710000/newsid_4710300/4710352.stmhttp//www.drlwilson.com/articles/what_is_charity.htmhttp//www.answers.com/Voluntary OrganizationsA Voluntary Organization is any organization that uses the human resources of volunteers for achieving its main purpose. Voluntary Organization is a not-for-profit organization because they use their income to help those in need. Voluntary Organizations are provided in areas such as environmental, global development and community care. Examples of voluntary organizations are Scouts, National Trust and Girl Guides. The purpose of a Voluntary Organization is to provide a service to those in need.BTEC first gear Business by chirrup Carysforth and Mike Neildhttp//www.answers.com/Ltd (Private Limited go with)A private limited company is a company that is organized to give its owners limited liability. The company exists in their own rights this means the finances from the company are separate from the personal finances of their owners. The owners of the company each own part of the business this makes the owners shareholders of the company. Private limited companies are usually family concerns or were firstly so. This type of organization is often chosen when a sole trader wants to expand and retain control of a company. Ltd co mpanies are seen as firm projects by banks and customers. The companies are run by directors and shareholders. Examples of Ltd companies are Virgin and Clarks. The purpose of an Ltd is to maximise profit and to expand the company.AdvantagesThe company has a legal existence separate from management and its membersThe companys name is protected O.K. company income plots usually provide better benefits than those paid under contracts with the self-employed and those in non-pensionable employmentDisadvantagesThey have to pay Corporation tax on top of any existing taxesWanted benefit from economies of measureLack of capital due to no share issue to the general publicBTEC First Business by warble Carysforth and Mike Neildhttp//www.answers.com/FranchisesThis type of business starts by development the name of a touristy/well known organization. A franchise is an agreement or license between two parties which gives a person or group of people (the franchisee) the rights to market a produ ct or service using the trademark of another business (the franchisor). The Franchisor gives the Franchisee help and support to run their business. Examples are KFC and Prontoprint. The purpose of Franchise is to make a profit by using the name of a well known business and its resources.Advantages learn and help on how to run or open the is providedRisks associated with the business are smaller than most other businessesYou dont need to have experience to open or run the businessThe finance is easily accessible and its at affordable ratesThe business is a proven concept and is already set upThe supplies needed are available at discount pricesDisadvantagesYou have to work long hoursThe franchisor has control over the franchisee and will want and need high standardsFranchisors usually want franchisees to follow their operations manual to a tee in order to ensure reliabilityThe franchisor might go out of businessAll profits are shared with the franchisorOther franchisees could give the brand a bad reputationBTEC First Business by Carol Carysforth and Mike Neildhttp//www.answers.com/PLC ( man Limited Company) humanity Limited Company (PLC) is a type of business which is permitted to offer its shares to the public. All public limited companies names end in plc. PLC companies must have at least two shareholders, two directors and a trained secretary. A Public limited Company is different from a Private Limited company because its shares can be bought and sold by the public. Directors are paid to run the company and may or may not own shares of the company. To be a PLC 50K share capital is needed. The purpose of PLC is to generate enough money to expand and evolve into an enterprise.AdvantagesLarge plcs may find it easier to borrow from banksShares can be advertisedBenefit from economies of scaleCheaper borrowing and bulk purchaseShares can be sold through the stock exchangeDisadvantagesRisk of takeover by cope with companies who have bought shares in thecompany(E. g. Kraft trying to take over Cadbury chocolate)Going public can be expensiveSome plcs can grow so large that they may become difficult tomanage effectivelyBTEC First Business by Carol Carysforth and Mike Neildhttp//www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCESitemId=1073789599http//www.answers.com/Co-operativesCo-operatives are a number of individuals or businesses work together to achieve a usual point. The business is conjointly owned and run by the workers. All profits made from the business are shared and the owners make combined decisions about how the business should run. Self-help, self-responsibility, democracy, e fiber and solidarity are the values that Cooperatives are based on. The purpose of the Co-operatives is to serve their members in a prudent and effective manner and to help them generate an income and possibly profits.AdvantagesUsually more stable , caring and responsible employersCan give job satisfaction and varietyEncourages strong work commitmentsM ore responsible to customers and the community within the businessDisadvantagesThere could be conflict between members long-acting decision-making processExtensive record keeping necessaryEmployment benefits often cant match those offered by other business typesLess reason to invest additional capitalThey can limit your quality of outside financeParticipation of members required for successhttp//kribhco.net/english/what_coop.htmBTEC First Business by Carol Carysforth and Mike Neildhttp//www.answers.com/Public SectorPublic Sector is a part of the public which is controlled by the government. The Public Sector is owned by the sate and provides many services free of charge and other at or below a price. The purpose of a public Sector is to provide a quality service to the community. The aim of the Public Sector is to improve service condition and to operate within budget. The Public Sector includes the government departments, local councils, NHS hospitals and state schools. Examples o f Public Sector Organization are London Underground, practice of law and National Health Service. The purpose of a Public Sector is to provide goods and/or service and to provide value for money.AdvantagesThe job security is very tight, its difficult to get firedGenerous benefitsMore relaxed automatic tellerDisadvantagesFewer positions availableLower payLess flexibilityBTEC First Business by Carol Carysforth and Mike Neildhttp//whatis.techtarget.com/definition/0,,sid9_gci1154572,00.htmlhttp//www.answers.com/