Managing People & Organisations
Managing people & organisations assessment notes
Topics
* Types of business * Mission Statements * Policies * Goals * Objectives
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Types of Business
Sole Trader – one owner of business (1 person who has legal responsibility) such as gardener, window cleaner, small retailer, and plumber
Advantages
* Caters for needs of local people * Profits don’t have to be shared * Business affairs can be kept private * Speedy decisions can be made as few people are involved * Personal attention can be given to company affairs and customers * Easy to set up as no special paperwork is required * Less capital required as these are generally small businesses
Disadvantages
* Unlimited liability puts personal possessions at risk (no matter what debt has been ran up the sole trader has to cover it) * Finance can be difficult to raise * Small scale limits discounts and other benefits of a large scale production * Prices are often higher than those of larger organisations * Ill health/holidays etc. may affect the running of the business
Partnership – silent partner, joint/full partner -usually a partnership deed is drawn up referring to financial matters, capital contributed, salary and rules & guidelines for general running of the business.
Limited partner may be introduced as long as they take no active part in the running of the business. However, there must always be at least one partner with unlimited liability.
Advantages
* Capital from partners * Larger-scale opportunities than for sole traders * Spreads responsibilities and decisions * Members of the family can be introduced to business * Affairs can be kept private
Disadvantages
* Unlimited liability (except for sleeping partners) * Disagreements between partners * Limit on number of partners * Partnerships have to be re-formed if partner dies
Topics
* Types of business * Mission Statements * Policies * Goals * Objectives
-------------------------------------------------
Types of Business
Sole Trader – one owner of business (1 person who has legal responsibility) such as gardener, window cleaner, small retailer, and plumber
Advantages
* Caters for needs of local people * Profits don’t have to be shared * Business affairs can be kept private * Speedy decisions can be made as few people are involved * Personal attention can be given to company affairs and customers * Easy to set up as no special paperwork is required * Less capital required as these are generally small businesses
Disadvantages
* Unlimited liability puts personal possessions at risk (no matter what debt has been ran up the sole trader has to cover it) * Finance can be difficult to raise * Small scale limits discounts and other benefits of a large scale production * Prices are often higher than those of larger organisations * Ill health/holidays etc. may affect the running of the business
Partnership – silent partner, joint/full partner -usually a partnership deed is drawn up referring to financial matters, capital contributed, salary and rules & guidelines for general running of the business.
Limited partner may be introduced as long as they take no active part in the running of the business. However, there must always be at least one partner with unlimited liability.
Advantages
* Capital from partners * Larger-scale opportunities than for sole traders * Spreads responsibilities and decisions * Members of the family can be introduced to business * Affairs can be kept private
Disadvantages
* Unlimited liability (except for sleeping partners) * Disagreements between partners * Limit on number of partners * Partnerships have to be re-formed if partner dies