Business Structure
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- Category: Other
- Date Submitted: 01/22/2011 01:17 PM
- Pages: 9
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* Task 1A
Private Sector
Sole Trader (Rita Hair Salon Camberwell)
Rita decided to set up a hair salon shop in Camberwell since there is no competition. She has “Unlimited Liability” that is if she becomes indebted to the bank, she could lose her personal properties if the business fails. She employed a small number of staff.
Rita has funds for the business. She carefully wrote down facilities and equipment she needs, for example the shop, hair dryer, a landline and publicity materials etc.
She does have brilliant managerial skills to operate her shop, she sets up the opening and closing time, supervises the staff, do the account, etc.
She registered her business with Inland Revenue and Customs for the purpose of her yearly tax return.
Rita is now enjoying the benefit of ownership since she is not having a business partner. For any new development, for example expansion or paying suppliers, her consent is needed, since she is the sole decision maker and controller of the business.
She did her tax return liability, paid staff, suppliers and other expenditures, what is left (Profit) is her own. She is also thinking of reinvesting this profit into the business for expansion.
* Task 1B
Public Limited Company (Marks & Spencer)
For M&S to run as a public limited company they need at least two partners and shareholders and three legal documents, Memorandum of Association; this clearly states what M&S wants to relate to the public i.e. what they offer to the public. Articles of Association; this outlines the internal rules governing M&S i.e. rules about meetings and the right of shareholders to vote. Certificate of Incorporation; is evidence that M&S is fully established and can now trade.
To raise capital M&S invited the general public to buy shares for which its prices will be...
Private Sector
Sole Trader (Rita Hair Salon Camberwell)
Rita decided to set up a hair salon shop in Camberwell since there is no competition. She has “Unlimited Liability” that is if she becomes indebted to the bank, she could lose her personal properties if the business fails. She employed a small number of staff.
Rita has funds for the business. She carefully wrote down facilities and equipment she needs, for example the shop, hair dryer, a landline and publicity materials etc.
She does have brilliant managerial skills to operate her shop, she sets up the opening and closing time, supervises the staff, do the account, etc.
She registered her business with Inland Revenue and Customs for the purpose of her yearly tax return.
Rita is now enjoying the benefit of ownership since she is not having a business partner. For any new development, for example expansion or paying suppliers, her consent is needed, since she is the sole decision maker and controller of the business.
She did her tax return liability, paid staff, suppliers and other expenditures, what is left (Profit) is her own. She is also thinking of reinvesting this profit into the business for expansion.
* Task 1B
Public Limited Company (Marks & Spencer)
For M&S to run as a public limited company they need at least two partners and shareholders and three legal documents, Memorandum of Association; this clearly states what M&S wants to relate to the public i.e. what they offer to the public. Articles of Association; this outlines the internal rules governing M&S i.e. rules about meetings and the right of shareholders to vote. Certificate of Incorporation; is evidence that M&S is fully established and can now trade.
To raise capital M&S invited the general public to buy shares for which its prices will be...