Managing People & Organisations

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Managing people & organisations assessment notes 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…show more content…
Shares may be issued when: a) A new company is formed b) A Nationalised industry is privatised c) A PLC wishes to raise more capital d) A Ltd company wishes to become a PLC Advantages * Limited liability for shareholders * Easy to raise capital * Operates on a large scale * Easy to raise finance from banks * Employs specialists Disadvantages * Formation can be expensive (insurance legal costs) * Decisions can be slow and “red tape” can be a problem * Problems of being too large * Employees and shareholders distanced from one another * Affairs are public Public Enterprise Public Corporations The government still owns a number of industries and businesses on behalf of the people. Most of these take the form of public corporations. A public corporation is set up by an Act of Parliament such as British Rail, British Coal and the Bank of England. Once a public corporation has been set up, the government appoints a chairperson to be responsible for the day to day running of the industry. The government keeps the power to make major decisions about how public corporations should run such as the decision to close down large sections of the railway network and whether to build new power stations. However the chairperson and managers will decide on day to day issues such as wages, prices, timetables and industrial relations. Whereas PLC and Ltd Companies have to make
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