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LO1 - Understand different types of business organisations. For a level 2, you have to demonstrate your knowledge of these different business structures : A sole trader A Partnership A Private Limited company (Ltd). LO1 - Understand different types of business organisations.
For example: I cut and pasted this entire paragraph from the website Businesscasestudies.co.uk
The sole trader is the most common form of business ownership and is found in a wide range of activities (e.g. window cleaning, plumbing, electrical work, busking). In the UK about 20% of sole traders operate in the construction industry, a further 20% in retailing, and about 10% in finance, and 10% in catering.
A sole trader owns runs and manages their own business. Businesscasestudies.co.uk (2013) suggests that a sole trader is the most common form of business structure found in the UK.
I like the section about the typical types of sole trader business but instead of using the Businesscasestudies reference again, I searched on the internet for the same type of information. Here is the remaining part of my sentence:
Any individual with a business idea can set up as a sole trader. Learnmanagement2.com (2013) lists the most common types of sole trader as plumbers, builders, internet entrepreneurs, beauticians, market traders, grocers and butchers.
This is what you need to start doing in all of your assignments on the Access course
Oh and don’t think about using my sentences in your assignments, that would be PLAGIARISM.
For a level 3 – you have to evaluate the
When a sole trader starts their business they have to fund the capital that is invested in their own business. This is not a problem is the sole trader has access to funds. Partnerships also have greater amounts of capital than sole traders because there are more people to introduce funds. However in In comparison a limited company has greater potential to raise more capital. Lawpack.co.uk (2013) explains that in comparison capital can be raised with relative ease in a limited company because there are usually more investors who can buy shares for a given price in exchange for owning part of a limited company. Indeed Everymanlegal.co.uk (2013) states that since the 2006 Companies Act it has become easier to issue shares. This is because directors of limited companies can now allot shares without shareholder approval.