Business Organisations Unit 6 Chapter 19 Unit 6

Transcript:Business Organisations Unit 6 Chapter 19 Unit 6:
Business Organisations Unit 6 Chapter 19 Unit 6 comes up in Part 1 of the long questions. 6th Year Business Ms. Marshall 6th Year Business Ms. Marshall Types of Organisations Sole Trader Indigenous Firm Partnership Private Limited Co. Public Ltd. Co. Cooperative Franchise Alliance Transnational Co. Semi-State 6th Year Business Ms. Marshall Structures used to start up a company Sole Trader Cooperative Private Limited Co. Partnership Semi-State Definitions Sole Trader: a business set up, owned and run by one person, e.g. a local hairdressers or chemist. Partnership: a business set up, owned and run by between two and twenty people with the intention of making a profit. E.g. KPMG, PWC accountants. Private Limited Company: a business which may have between 1 and 99 shareholders, who operate the business with the benefit of limited liability e.g. Eason Ltd. Cooperative: businesses set up by at least seven members who democratically control the enterprise for their own benefit. E.g. Credit Unions, Producer Co-ops such as Kerry Co-op, and Worker Co-ops such as Greencaps in Dublin Airport. 6th Year Business Ms. Marshall 6th Year Business Ms. Marshall Sole trader Sole Trader A person who runs a business enterprise under his/her own name, e.g. Marian Kelly, or under a business name, eg MK Electronics is regarded as a sole trader. Examples of sole traders are retail outlets of many kinds such as local shops, garages, restaurants, electrical retailers, etc. and also tradespeople such as plumbers, electricians, carpenters and hairdressers. Advantages There is a greater self-interest on the part of the owner. The proprietor or owner will either make a profit or a loss and is therefore encouraged to make greater efforts to succeed in the enterprise. The owner has more in-depth knowledge of the business. The business owner can make quick decisions. There is no need for regular meetings with other people. When business is small, the sole trader maintains very close contact with employees and customers. Better relationships with these important groups result. Because a sole trader is very easy to establish formation of the enterprise is both quicker and cheaper than other forms. 6th Year Business Ms. Marshall Sole trader Disadvantages The control and management of the business enterprise may fall on the shoulders of one person. There is less capital available for expansion in the future. The owner must bear all the risk of possible business losses and is personally liable for