LEGAL STRUCTURES

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  • Created by: _Holly98
  • Created on: 12-12-15 10:19

LEGAL STRUCTURES

UNINCOPERATED: 

  • SOLE TRADER
  • PARTNERSHIP

INCOPERATED 

  • PRIVATE LIMITED COMPANY
  • PUBLIC LIMITED COMPANY 
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TYPES BUSINESS ORGANISATIONS

SOLE TRADER

PUBLIC LIMITED COMPANY

PRIVATE LIMITED COMPANY

CO-OPERATIVES

PUBLIC SECTOR

PRIVATISATION - GOVERNMENT SELLS OFF A COMPANY

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LTD VS SOLE TRADER

ADVANTAGES

  • LIMITED LIABILITY
  • RASING FINANCE
  • EXPERTISE

DISADVANTAGES

  • CONTROL
  • HIGHER PRESSURE PEFORM
  • SLOWER DECISION MAKING
  • GREATER ADMIN COST
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PLC VS LTD

ADVANTAGES

  • SIZE (IMAGE / MARKET POWER)
  • RAISE MORE EQUITY (CASH) SO GROW BIGGER

DISADVANTAGES

  • THREAT TAKEN OVER
  • EXPENISVE SET UP & MAINTAIN
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MUTUAL BUISNESS

RUN BENEFIT EMPLOYEES, CUSTOMERS, LOCAL COMMUNITY OR SUPPLIERS

OWNED CONTROLLED BY OUTSIDE INVESTORS

LEGAL STRUCES IS INDUSTRIAL & PROVIDENT SOCIETY

MUST REPRESENT: HONESTY, OPENESS, SOCIAL RESPONSIBILITY & CARING

PRINCIPLES: OPEN MEMBERSHIP, DEMOCRATIC MEMBER CONTROL, PROVISION EDUCATION, PROVISION TRAINING & INFO & CONCERN COMMUNITY

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CO-OPERATIVES

CONSUMER: CUSTOMERS MEMBERS BUSINESS

PRODUCER: GROUP BUSINESS WORK TOGETHER BENEFIT FROM FACTORS E.G. INCREASED BARAGANING POWER

WORKERS: OWNED & OPERATED BY EMPLOYEES

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PUBLIC SECTOR ORGANISATIONS

WHAT

  • PUBLICALLY OWNED
  • PROVIDE GOODS / SERVICES LOCAL PUBLIC AT NATIONAL & LOCAL GOVERNMENT LEVELS
  • ORGANISATION CONTROLLED GOVERNMENT / LOCAL AUTHORITY

WHY

  • PROVIDE ESSENTIAL SERVICE
  • PREVENT EXPLOITATION CUSTOMERS
  • AVOID DUPLICATION
  • PROTECT JOBS & MAINTAIN KEY INDUSTRY
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PRIVITISATION

SALE PUBLIC SECTOR TO PRIVATE INVESTORS

WHY?

  • STATE RUN PERCIEVED INEFFICENT
  • FINANCIAL BURDEN GOVERNMENT (EG BRITISH RAIL)
  • SELLING RAISED VALUABLE MONEY

DISADVANTAGES

  • PRICE INCREASE
  • CUT JOBS - REDUCE SERVICES
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BUYING SHARES COMPANY

SHARES PAY DIVIDENDS 

STOCK EXCHANGE PAY TWICE YEAR

VALUE INCREASE SELL PROFIT

ENOUGH SHARES INFLUENCE MANAGEMENT COMAPNY 

VENTURE CAPATALIST BUY 80% INSITS CHOOSING DIRECTORS

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FLOTATION

SHARES PLC FIRST OFFERED SALE PUBLIC

COMANY GIVEN LISTING STOCK EXCHANGE

COMPANY RAISE SUBSTANTIAL FUNDS

SHAREHOLDERS 'CASH IN' (SELL SHARES)

COMPLEX & EXPENSIVE

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