Part A: Discuss the types of business entities that exist. Discuss the advantages and disadvantages of each. For this part of the assignment I will be looking at four different types of business entities. The four types of these business organisations are: a) Sole trader b) Partnership c) Limited liability or (joint stock) company d) Unincorporated associations. Sole Trader businesses In this form of business organisation one person provides all the permanent finances and, in return, retains full control of their business and enjoys all the profits made by the business.
The sole proprietor is likely or will eventually employ others as wage earners, but the distinctive feature is that there is a single owner of the business. There are no legal formalities involved in setting up in business as a sole trader. However, under the business names act 1985 the owner must confirm the three basic requirements: a) The name of the owner must be displayed on all business documents; b) The owner must disclose information relating to ownership to anyone who has dealings with the business;
c) A notice concerning ownership must be displayed in the business premises. Apart from these three there are no other legal requirements when establishing a sole trader business. The trader is required to submit accounts to the Inland Revenue expenditure taxes. Limited liability is a great advantage. A company is legally a separate thing, which means that it has certain rights that are recognised by the courts. It can buy and sell assets; make contracts; sue other companies and individuals; and can itself be sued.
Companies differ from partnerships in that act of incorporation creates a new legal entity distinct from the shareholders who own the company. Contracting of debt are actions of the company rather then individuals. Unlike other business forms, a company is unaffected by death or retirement of the shareholders. Shareholders are liable to meet the debts of the business only to the extent that they have invested in the business (only if shares are not fully paid up). The shareholders have control over the company's affairs.
Their view is heard at the annual general meeting (AGM), or at any special meetings they call. Shareholders enjoy the privilege of limited liability. Electrical sockets cause shock and death. The child may put small items such as a pen in to the socket and will result in shock. May get contact with water that is a hazard to electricity. 2 Make sure that all electrical sockets are out of reach of the child, i. e. have them fitted higher up the walls, if this cannot be achieved then put safety socket plugs. 14 Cooker knobs, very vital to secure.
A very dangerous appliance in the house. The child may be able to reach the gas knobs and turn it on, hence causing gas leakage. Could easily cause death by inhaling gas or cause a fire by a spark. 1 Very important to keep well away from the child. Have a play area at the end of the kitchen with gates at them so the child cannot get out. Another alternative could be to have a cooker with its knobs at the top extractor part. While cooking, keep young children in a high chair or playpen, at a safe distance from hot surfaces, hot liquids and other kitchen hazards.