1. Sole proprietor: A sole proprietor, also known as a sole trader is owned and run by one individual. The establishment costs can be raised either publicly or privately but typically the sole proprietor provides all the capital and takes all the risks. The risks involved are great as the sole proprietor has unlimited liability you have to make all the decisions yourself. Administering/managing is in the hands of the sole proprietor that needs to cover all aspects of the business
Partnership: A partnership is an arrangement formed by signing a Deed of Partnership where individuals agree to cooperate to advance their interests. In the most frequent instance, a partnership is formed between one or more businesses in which partners work together to achieve and share profits or losses. The establishment costs can be raised either publicly or privately e.g. bank, investors. The risks involved. People can fall out. Ordinary partnerships do not have limited liability. Administering/managing is in the hands of the partners.
Company: A limited company is a private entity owned by its share holders. Share holders put money into the business either raised publicly or privately. A limited company has the protection of limited liability. Administering/managing is in the hands of the elected board of directors.
Public enterprise: Is a public limited company owned by its share holders which can purchase shares at the stock exchange. The main advantage is large amounts of cash can be raised very quickly. The risk is the control of the business can be lost if large quantities of shares are purchased as part of a take over bid. Administering/managing is in the hands of the majority share holders.
2. A gymnasium: Most appropriate business organisation is a sole proprietor as managing can be done by one person. Least appropriate is the public enterprise as a gymnasium is not considered a public enterprise and stocks cannot be traded at the stock market.
A beef production farm: Most appropriate business organisation is a limited company as managing of the business can be done by shareholders or if it is a family business by its members. Least appropriate is a public enterprise as stocks cannot be traded on the stock market.
Import and distribution of chemical pesticides: Most appropriate business organisation is a partnership as there could be partnership between the importers and distributors and the managing of the business can be done by both. Least appropriate is a sole proprietor as managing of the business can be very difficult.
Tree lopping and removal service: Most appropriate business organisation is a limited company as the managing can be done by a small number of shareholders. Least appropriate a public enterprise as stocks cannot be traded on the stock market.
3. A farm is viable because meat, dairy, vegetables and fruit for example are always in demand and people do need to eat. The current demand for food globally has never been bigger. Suppliers are always sought after. The current rise in demand for organic products can make owning a farm very profitable. There are very big advances in farming methods and equipment these days meaning tending the land and looking after wild stock can be made much easier.
4. The legal requirements needed for running a farm is to obey the current legislation put in place. The following acts need to be followed The food safety act 1990 and The general food law regulation (ec) 178/2002. The directive 93/119/ec for the slaughter of animals also needs to be followed. The business needs to have Ltd in its name. The company needs to keep detailed records especially once they begin trading. Shares can only be sold privately and with the consent of the shareholder.
5. 1. Manufacturing company