Ch 19/18? Business Organisations PLC Min 7 owners Can sell shares to public E.g Ryanair PLC Benefits and negatives of Public L C Write out from book Write out summary in your own words on each of the types of business start with Soletraders and end with state owned businesses
Soletraders E.g tradesmen decisions made by them declare their own taxes no need to publish accounts less likely to get loans bears all the risk
Private LTD companies 1 – 50 shareholders At least 2 directors Can’t sell shares to the public Easons Ltd Steps in setting up: Rules in the companies act 1990 MOA, AOA, form A1 Founders send docs with fees to registrar of companies Receive a cert of incorporation from registrar Statutory meeting , Vote in BOD. Now corporate body separate from its owners.
Partnerships Write out definition from book min of 2 people governed by partnership act of 1890 one general partner has unlimited liability + better skills and decisions and money - share profits, liable,loans,death
Franchising Write out definition. E.g O’Briens sambos E.g Mc Donalds. Same good product and service, logo worldwide. Franchisee pays a sum at the start to open Franchiser also gets paid royalties\%profits Franchiser gives management and supplies
Question Soltrader? Partnerships? Franchise? Private limited. Write defo out from book Public limited Explain differences and e.g’s
Franchising benefits and negatives expand with little investment or risk tried and tested business formula marketing and training little freedom for iniative pressure to keep high standards
Co-operative Society Credit unions surplus funds go as dividends to us Write out defo. E.g credit union + avonmore common interest in set up of business min 7 members, limited liability, one vote Registrar of friendly services 8,000-127,000 Credit unions surplus funds go as dividends to us producer co-ops develop and sell products farmers give them, helps the Irish economy farmers in co-ops get little power, co-ops still need loans despite number of shareholders
Transnationals I.T and communications made it easier Big companies, head office in one country but many branches of the company worldwide I.T and communications made it easier American global corporations in Ireland e.g. Gateway, Intel etc.
Question + and – of franchises? Co operatives? Transnationals? Explain differences and e.g’s
Positives and Negatives Good and bad to have them in Ireland Give jobs, new skills, Irish suppliers, pay tax, country’s reputation Move on to cheaper places for labour and grants when grants expire false Irish balance of trade view as profits move to places where sell goods not make.(transfer pricing). Profits repatriate back to head office
State Owned Enterprises Government organisations e.g Dublin bus give jobs, aid research, can run unprofitable and necessary services like Dublin bus for the publics needs. Maybe overstaffed, unprofitable, poorly capitalised, poorly run Privitisation= Sell government companies to private business people
Private versus Public companies state companies arguably less concerned with money and more concerned with the general public/environment better for a countries image, Aerlingus Deregulation: allow new companies into a market e.g allow valutel, worldcom, euphony into Telcom Eireanns market. Private companies often take over state companies or add to competition through government legislation e.g Aerlingus, Eircom, Airtricity P361-366 sum p362 set up private ltd Memorandum and articles of association p363 Alliances p 375 P378 Changing trends
Conclusion Types of business organisations include PLC, Private Ltd, sole traders, partnerships, franchises, co operatives, transnationals, state owned companies. Know the pro s and cons of each type and of having transnationals in Ireland. Pros and cons of private versus public companies. Memorandums, Articles Form A1 see examples. Why change structures? 93 notes Privatisation and trends in structures. 92 mocks notes
Question + and – of transnationals? State owned? Private versus public? Explain differences and e.g’s