Study On Different Organization Types Business Essay

Study On Different Organization Types Business EssayA Sole Trader trading exists amongst other cablees in a society. A Sole Trader is a person that owns and controls his/her own business, therefore profits earned from the business goes to the owner of the business. Sole Trader business also includes business like cosmetics, hairdressing and nails, plumbing and photographers. Sole trader business ar cheap and easy to setup also its private. Sole traders argon their own owners so they dont any separate legal existence. Un moderate liability is when the owners of a sole trader business start to pay their debts with the money theyve earned. The aim of a sole trader is to provide run or sell/produce products.AdvantagesCan choose hours of workCan make your own decisionsAll the profit do is yoursCan claim expenses and certain costs against income taxDisadvantagesCant have a sickness payCant have a set vacation payTime consuming accounting is done in your own free timeContinuity of workhttp//www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershipsrev1.shtmlhttp//www.answers.com/ federationA union is another type of business governance in a society which involves a planned agreement or relationship between two or more people. If two or more people decide to open a business together, a contract called deed of partnership is normally skeletal up. This states the type of partnership it is, how much assets each person has contributed, and how profits and losses will be partingd. Typical examples of experts who may go into partnership together are doctors, dentists and solicitors. They offer benefit from shared expertise, but like the sole trader, have unlimited liability. A partnership jakes also have a quiescency partner this person invest the business but does not have dealings in the day to day flirtning of the enterprise. The purpose of a Partnership is to make a profit and to provide gos or sell/produce products.AdvantagesPartnerships are relati vely easy to establish. One of them could have the skill to farm fundsThe profits that the business makes flow directly through the partners face-to-face tax returnsYou laughingstock share out the responsibilities between the partners. This means that no iodine person is responsible for betning all of the business.Partnerships provide moral support and will allow 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 do, and actions taken by the other partner or partnersAt some time, there intimately certainly will be disagreements in management plans, operational procedures, and future vision for the businessYou may encounter difficulty in attracting investorshttp//www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershipsrev2.shtmlhttp//www.answers.com/ almsgivingA ch arity is an organization that allows one groupto assistance another group, whether its people, animals or nature. Many of the best-known charities were set up by people who felt passionate about a cause 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 organized in a number of different ways they can be an unincorporated association, a trust or a company limited by guarantee. Examples of charities are Christian Aid, British Red Cross and Greenpeace. The purpose of a kindness 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 circu mstancesThey can formally represent and help to meet the needs of the communityCharities are often able to raise funds from the public, grant making trusts and local government more easily than non charitable bodiesDisadvantagesCharities must obey with charities legislationCharity 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, spherical devel opment 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 Business by Carol Carysforth and mike Neildhttp//www.answers.com/Ltd (Private Limited Company)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 trusts to overdraw and go on control of a company. Ltd companies 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 purpo se 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 protectedApproved company income plots usually provide better benefits than those paid at a lower place 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 scale lose of capital due to no share issue to the general publicBTEC First Business by Carol Carysforth and Mike Neildhttp//www.answers.com/FranchisesThis type of business starts by using the name of a popular/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 product 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 an d Prontoprint. The purpose of Franchise is to make a profit by using the name of a well known business and its resources.AdvantagesTraining 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 reachable and its at affordable ratesThe business is a proven concept and is already set upThe supplies required 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 ( exoteric Limited Company)Public 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 advertised avail from economies of scaleCheaper borrowing and bulk purchasingShares can be sold through the stock exchangeDisadvantagesRisk of takeover by rival 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 macroscopical that they may become difficult tomanage effectivelyBT EC 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 jointly 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, equality and solidarity are the taxs 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 stemma satisfaction and varietyEncourages strong work commitmentsMore responsible to customers and the community within the businessDisadvantagesThere could be conflict between membersLonger decision-making emergenceExten sive record keeping necessaryEmployment benefits often cant match those offered by other business typesLess reason to invest superfluous capitalThey can limit your choice 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 welkinPublic 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 of Public Sector Organization are London Underground, Police 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 atmosphereDisadvantagesFewer positions availableLower payLess tractabilityBTEC First Business by Carol Carysforth and Mike Neildhttp//whatis.techtarget.com/definition/0,,sid9_gci1154572,00.htmlhttp//www.answers.com/