Forms of Business by Miriam Bergin https://padlet.com/mbergin/FORMSOFBUSINESS 5th and 6th years en-us 2018-03-21 10:41:45 UTC 2018-04-11 09:59:42 UTC hello@padlet.com Company sb421 https://padlet.com/mbergin/FORMSOFBUSINESS/wish/244445381 Separate legal entity set up under the Companies Act 1963-2009 for the purpose of carrying out business activity

PRIVATE LIMITED COMPANY:
  • Board of directors
  • 1-149 shareholders
  • Certificate of incorporation
  • No shares to public/on stock exchange
]]> 2018-03-21 10:56:45 UTC https://padlet.com/mbergin/FORMSOFBUSINESS/wish/244445381 LTD. sb421 https://padlet.com/mbergin/FORMSOFBUSINESS/wish/244445770 Advantages:
  • Limited liability
  • Separate legal entity
  • Easy to raise finance
  • Low corporation tax

Disadvantages:
  • Costly to form
  • Shared profits
  • Accounts must be published
]]> 2018-03-21 10:58:01 UTC https://padlet.com/mbergin/FORMSOFBUSINESS/wish/244445770 Formation of an LTD sb421 https://padlet.com/mbergin/FORMSOFBUSINESS/wish/244683728
  • Documents to Registrar of companies = MOA and AOA
  • Form A1 = list of directors + consent, declaration of compliance with acts, statement of authorised and issued share capital
  • Documents and fees to Registrar
  • Certificate of incorporation is issued
  • Statutory meeting held - present MOA and AOA to shareholders, appoint directors and auditors, give share certificates, open bank a/c
  • Incorporated = separate legal entity, limited liability, can begin trading

    • ]]>     2018-03-21 18:10:00 UTC https://padlet.com/mbergin/FORMSOFBUSINESS/wish/244683728     Business Alliance ArnoldLAD https://padlet.com/mbergin/FORMSOFBUSINESS/wish/249165887 *Agreement between 2 non-competing firms to promote business interests which will be profitable to both.*

    Franchising -
    Method of marketing goods/services via a proven business formula, licensed by the franchisor to the franchisee to copy within an agreed geographical area. Eg. - John and Deirdre Doyle wish to open a new bookshop. They could open a shop as an independent retailer or arrange a franchise agreement with Easons. In this case, Easons become the franchisor and John and Deirdre Doyle become the franchisee.

    Benefits to franchisor -
    1) Enables them to expand business into locations where they have no market share.
    2) Amount of capital invested is less than if they set up business in an area.
    3) Increases profits as they receive an agreed financial return from each franchisee.

    Benefits to franchisee -
    1) Business name is well known.
    2) Reduced risk as established business is more likely to succeed.
    3) Economies of scale in areas such as advertising and sales promotion and centralised stock purchasing.
    4) No competition using the same name in a specified area.

    Disadvantages to the franchisee -
    1) An initial payment for licence, percentage of sales (royalty) payment (5%).
    2) Loss of control. Quality standards, range of products sold will be specified by franchisor.
    3) Franchisee can't sell business without agreement of franchisor.

    ]]>     2018-04-06 10:27:26 UTC https://padlet.com/mbergin/FORMSOFBUSINESS/wish/249165887     Strategic Alliances (Joint Ventures) ArnoldLAD https://padlet.com/mbergin/FORMSOFBUSINESS/wish/250623790 Advantages :
     
    Formation & dissolution - 
    Formed by a contract negotiated by 2 separate businesses.

    Control - 
    Shared ownership and control can mean pooling and sharing of expertise. Expansion can be faster when 2 or more firms co-operate in a joint venture.

    Finance - 
    Both firms can invest funds and share the costs and financial risks.

    Profits & risk - 
    Costs are shared ; meanwhile the sharing of staff, technology and other resources can mean less risk than for one individual company.

    Disadvantages : 

    Formation & dissolution - 
    Negotiating the contract between 2 or more separate firms can be slow and time consuming. Withdrawal from the contract at a later date by one party will require consent of the other party.

    Control - 
    Is shared by partners and any conflict or differences between the firms can lead to the alliance splitting up before it has had time to become successful. The speed of expansion can be delayed due to the need for greater communications and shared decision making.

    Finance - 
    Disagreements can arise over sharing costs.

    Profits and risk - 
    Any profit must be shared. ]]>     2018-04-11 09:51:27 UTC https://padlet.com/mbergin/FORMSOFBUSINESS/wish/250623790