Access To Different Sources Of Finance

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As companies become more sophisticated they will have a wider range of options to get raise finance. The way this is done is if a person takes out a loan to improve its income this loan comes from the bank. There is a special type of ownership called a sleeping partner can put money into the business but has no say in how the money is invested the sleeping partner has limited liability. When a company moves to a cooperate status it is able to draw on a much wide scale. This is not only wider access to sources of finance but also find it easier to raise finance because it is ore secure finically.

Control Control is they key consideration in deciding on what type of business to open. The great thing about being a sole trader is that it is your business you decide on all the decisions whereas if you are in a partnership you will have to share the decisions between 2-20 people where you might have disputes about where the company should go that’s why a deed of partnership should be signed before to minimise disputes. Many business prefer private limited to public limited companies because the owner will have more control over the business that why. If a company does become a public limited company there is a danger of losing the control because shares can be sold on the stock market.and groups or individuals can take over by buying lots of shares.

Use Of Profits

The biggest benefit of being a sole trader is that you keep the profits that you make but you would also have to pay for the loses that are made. In a partnership the cost is divided so the sole trader should think carefully when taking on a partner. In some companies shareholders may receive a reward for owning shares one is can be paid a dividend another is by selling there shares were they get a income.

Legal Liabilities

Different types of companies are faced with different types of legal requirements. The more complex the legal requirements, the more the more the company will need to hire lawyers unlike smaller companies. There is also less paperwork for sole traders and partnerships unlike an Ltd or a Plc where they have to issue a example of a paperwork is tax liabilities. All limited companies must present a memorandum of association and a article of association when they are setting up their Ltd so that they can receive a certificate of incorporation. Adams is in the private sector it is a Plc will means that its shares get sold on the stock market its shareholders have limited liability which would help shareholders because they wont lose everything that way.

Another advantage is if Adams ever needs money it can borrow of banks quicker than smaller companies because they are more financially secure but it would mean they would have to pay back at a high interest rate this is a reason that many LTD change to being a PLC so that they can raise finance quicker and to operate on a wider scale. The disadvantage is that the control would lose because it turns in to a Plc where they can’t control who buys the shares and would leave the owner with les control. When Adams turned into a Plc it meant that more people were investing money into they company, which meant that they could gain more profits due to these investments. Adams has also got to keep up with its liabilities and has to fill in its tax’s of what it owes top the government also it has to have top lawyers so that no illegal trade is happening so that it can not get sued for making forged documents about trade.

Types Of Culture

Power Cultures The centralisation of power is the key feature of power culture. It is frequently found in small organisations where control rests with a single individual or small group of people of people. The structure of power culture is best pictured as a spider web. There is a central power source and then rays of influence spreading out. Role culture The role culture is typical bureaucracies. These are large organisations in which all members have a defined job or a role to carryout. Business would divide into various functions. These would have hierarchy-ordering offices.

Task Culture Task culture become very important in business in the first decade of the twenty first century. Many people today work in teams. These teams may work together for a short or a long time to complete the task. In a task culture teams will often have considerable input in determining how a particular job is to done. Their views and opinions will be listened to. Person Culture In a person culture, individuals are central. The organisation exists only to serve the interests of those within it. Person cultures are most likely to be found in co-operatives and not for profit organisations like charity work. In a person culture an individual may leave the group but the organisation cannot sack the person also their person has a lot of freedom to adapt to how he or she wants.

Backward- facing forward looking Another distinction that is frequently made is between backward facing cultures, which are based on what has gone before in an organisation and forward looking cultures, which enable rapid change into the future. One important aspect of organisational culture is the emphasis on tradition. Some organisations are heavily influenced by previous practice, legends and ways of doing things. Other organisations are innovative and entrepreneurial, with little respect for previous patterns or methods. For example Anita Roddick has started that being prepared to run in the opposite direction to convention and to be prepared to break the rules is part of the culture.

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