SOME OF THE PROS AND CONS OF TYPICAL BUSINESS ENTERPRISES.

Recognise the types of business enterprise which includes:

• Public limited companies

• Private limited companies

• Partnerships

• Sole traders

• Cooperatives

All to greater or lesser degree are in business for profit

State owned enterprises in industries such as steel, rail transport and coal mining have not usually had to meet profit targets and are excluded from this analysis.

Limited companies are endowed with separate corporate status and thus exist independently of the members and directors. The key advantages to managers who are investors is that they are only liable for debts of the company up to the level of their shareholding. Managers employed by limited companies can check on company progress as reports have to be made regularly by the directors to shareholders.

Partnerships usually two but not more than twenty people, have advantage to the partners (proprietors) of relatively little legislative fuss to start trading, no obligation to publish accounts and the chance of sharing talents and stresses with others. The disadvantages are that the partners may not get well personally, and that each partner is personally liable for the debts of other partners.

A sole trader is a person working on his own. The main benefits are freedom to run the business as he/she wishes, few legislative restrictions and the opportunity to retain all profits of the business. The disadvantages are mainly that he/she is responsible for all debts of the business, works in isolation and must carry out all the usual management and leadership roles.

Cooperative are set up based on one person one vote and operate on openly democratic basis. The advantages are managers are that they do have limited liability and they share in the decision-making process as well as sharing profits. The advantages are that profits re normally modest, decision making processes can be frustratingly slow, and that long-term progress depend heavily on members ability to work together.

At Maryam Consultancy UK we help you get clear on the purpose and direction of your business, whilst focusing on how to achieve your goals, and how to grow your business and into credible business you desire it

to be.

We provide range of business booster package sessions tailored to you to help take your business to the next level which includes:

New business setups comprising of company registration and incorporation, liaising with HMRC for registration, VAT registration, business insurance and bank account advice etc.

Get in touch with us!