Business at work — страница 2

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family firms and for small enterprises involving just a handful of people. Private limited companies find it easier to attract capital because investors have the benefit of limited liability and this access to finance makes it simpler for the business to grow. Advantages: Shareholders have limited liability More capital can be raised Control of company held within the firm Shares are transferable Disadvantages: Profit are shared out among more people Legal procedures…involve time Not allowed to cell shares to the public Restricts amount of capital raised Difficult to find a buyer if shareholder wishes to “leave” Good example of privet limited company is Littlewoods Ltd. PUBLIC LIMITED COMPANY The second type of limited company tends to be larger and is called a public

limited company. There are about 1.2 million registered limited companies in the UK, but only 1 per cent of them are public limited companies. However they contribute with far more to national output and employ far more people than private limited companies. Good example of public limited company is Tesco plc. which I going to investigate. CO-OPERATIVES Co-operatives are organised on a regional basis. Members can purchase shares and each member has one vote at the Annual General Meeting, no matter how many shares are owned. Members elect a board of directors who appoint managers to run day to day business. The Co-operative is run in the interests of its customers and part of any surplus is distributed to members as dividend. Shares are not sold on the stock exchange, which limits

the amount of money that can be raised. Good example of co-operative is CRS (Co-operative Retail Society). CHARITIES Charities are organisations with very specialised aims. They exist to raise money for “good” causes and draw attention to the needs of disadvantaged groups in society. They also rise awareness and pass comment on issues, such as cold weather payments, which relate to the elderly. Charities rely on donations for their revenue. They also organise fund raising events such as fetes, jumble sales, sponsored activities and ruffles. A number of charities run business ventures. Charities are generally run according to business principles. They aim to minimise costs, market themselves and employ staff. Most staff are volunteers, but some of the larger charities employ

professionals. In the larger charities a lot of administration is necessary to deal with huge quantities of correspondence and handle charity funds. Provided charities are registered, they are not required to pay tax. In addition, business can offset any charitable donations they make against tax. This helps charities when raising funds. Good example of charity is British Red Cross. FRANCHISES A franchise is not a form of business organisation as such, but a way of managing and growing a business. Franchising covers a variety of arrangements under which the owner of a businnes idea grants other individuals or groups to trade using that name or idea. However, it is important to realise that a franchise can trade as a sole trader, a partnership or a private limited company. The

legal form of business that is chosen will depend on the capital needed, the degree of risk, the number of people having a stake in the franchise and the personal preferences of the owner. The person or organisation selling the idea (the franchisor) gains a number of advantages from the process of franchising. The franchisor normally receives a share of the profits generated by the franchise. Usually the franchisee benefits by being granted rights to an exclusive territory and support from the franchiser in the form of staff training, advertising and promotion. Franchising is a cheap and quick way to set up your own business. By the year 2004, it is estimated that 70 per cent of all new retail outlets in the US will be franchises. Good example of franchise is McDonald’s.

Industrial sectors. PRIMARY – extractive organisations. SECONDARY – manufacturing organisations. TERTIARY – providing-services organisations. Ownerships. PUBLIC SECTOR: Civil service, Government departments, Public corporations, Local Authorities. PRIVATE SECTOR: Sole traders, Partnerships, Limited companies, Charities, Co-operatives, Franchises. Objectives. - To make a profit To “Break – even” - To provide service Size. Small Medium Large Locations Local Regional National Multinational E1 Tesco plc. History Tesco was founded in 1924. Over the last seventy years, as the food retailing market has changed, the company has grown and developed, responding to new opportunities and pioneering many innovations. Today it is Britain’s leading food retailer. The founder of