Investigating Business - Ownership Essay -- Business Management Studie

Investigating Business - Ownership Investigating Business Unit One Task One: Ownership Introduction I have chosen to base my assignment on the following businesses: Sole-Trader for which I have chosen Errol Anderson’s business: Errol Anderson Motors PLC for which I have chosen Sainsbury’s I have chosen these businesses because a Sole-Trader and a PLC make a good comparison and therefore I have chosen a sole-Trader and a PLC. I have chosen Sainsbury’s as my PLC because firstly my teacher recommended this PLC to me. Another reason for choosing this PLC is that it is one of the UK’s successful businesses and also is a well known business in the UK. I am also a regular customer of Sainsbury’s and there for it is easier for me to talk about the services they provide their customers with. The website of this PLC also is very useful because it provides us with a Student Section in which the website allows us to look at the company’s history, company information and also it provides us with a Media Centre detail. Sainsbury’s has many articles in local newspapers and reports on television. It is a very popular business in the form of a PLC and therefore I have Chosen this business. I have chosen Errol Anderson, as my Sole-Trader because my teacher recommended me to do this Sole-Trader if I didn’t know a LTD, a Sole-Trader or someone in Partnership business. Errol Anderson is Sole-Trader who set up his own garage and called it Errol Anderson Motors. Another reason for me choosing Errol is that I didn’t have any friends or family member who were able supply me with information on either a Sole-Trader, a Partnership business or a LTD business so therefore I have chosen Errol Anderson and his business Errol Anderson Motors to base my assignment on. Sole-Trader A Sole-Trader is someone like Errol Anderson who has set up his own business. Errol’s business is called and is known as Errol Anderson Motors. Sole-Trader is someone who does a one-person business according to my assignment that one businessman is Errol. This is the simplest form of ownership in which the owner in this case who is Errol is fully controller of his business. Errol makes all decisions because he is the owner and has to spend a small amount of Capital to set up business such as a Sole-Trader. The financial information is private and t... ...PLC and Sole-Trader is that shareholders selling their shares can damage a PLC. But the Sole-Trader can also be damaged if it is on unlimited liability that can force them to sell their personal belongings. Decision-making The differences between the decision making in a PLC and a Sole-Trader is that a Sole-Trader like Errol does one-person business so therefore the Sole-Trader (Errol) makes his decisions himself and is in control of the business. So therefore a Sole-Trader like Errol decides for himself. The decision making of a PLC is made by the Boards of Directors. The Board of Director are shareholders who are elected by other shareholders to be the Board of Directors and have most of the power in the PLC in which the shareholders form partnership and groups to become Board of Directors. Overall the differences between decisions making of a Sole-Trader and a PLC is that a Sole-Trader is the owner of the business so they make decisions. But the owners of a PLC are the shareholders and if a shareholder or shareholders who own more than 50% of the company then they are made the Board of Directors and they are the ones who make the decision for a PLC.