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Table Advantages and disadvantages of companies

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  3. Compare the advantages and disadvantages of three of the following as media for communicating information. State which you consider to be the most effective.
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  5. Disadvantages of a Corporation
  6. Discuss the advantages and disadvantages for young people who decide to do this.
  7. Discuss the advantages and disadvantages for young people who decide to do this.
Sole trader  
Advantages Disadvantages
1. Only a relatively small amount of capital is needed to start up the business 2. The owner works for him or herself 3. Decisions can be taken quickly 4. Profits are not shared 1. Unlimited liability - could lose everything 2. If the owner dies or is ill, hard to continue the business 3. Difficult to obtain extra capital for expansion 4. May lack ideas, as less people to ask
Partnership
Advantages Disadvantages
1. More capital available 2. Each partner can specialise in a particular task 3. Range of ideas available 4. Partners can share any losses (and profits!) 5. Accounts need not be published 1. Unlimited liability 2. Action of one partner binding on others 3. May be problem of continuity on the death of a partner or if disagreement among partners 4. Capital may still be difficult to raise
Private Limited Company  
Advantages Disadvantages
1. limited liability 2. Still more capital available as more owners (shareholders) 3. Company has its own legal identity so can continue beyond a death or disagreement 4. Accounts need only be published in brief form 1. Less control for owners than in sole trader/ partnership 2. Capital less easy to raise than in public limited company as share cannot be sold to general public
Public Limited Company
Advantages Disadvantages
1. Limited liability 2. Easier to raise capital as shares an be sold to the general public 3. These firms can often grow very large benefiting from economies of scale 1. Large firms may suffer from diseconomies of scale 2. Easy transfer of shares makes takeover bids possible 3. Full accounts must be published

Part 2 Structure of the companies

Starting up

If you are still studying:

• what kind of organization do you want to work for?

• in which department? (e.g. production, finance, accounting, marketing, sales, human resources)

do you think it will later be possible to change departments?

• what do you think your first position will be?

• do you expect to have one immediate boss, to work for more than one superior, or to be part of a team?

If you are already working:

• what is your function or job title?

• what are you responsible for?.

•who are you responsible to?(who do you report to?)

• does anybody report to you?

• what other units, departments or divisions do you regularly have to work with?

• what other departments do you occasionally have conflicts with?

Reading

Text B

B.1 Vocabulary


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Text A Company Law| Read about four basic organization structures and try to summarize the information in a graphic way

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