Thus, with limited choice of company selection for home furnishing and high switching cost, the bargaining power of customers in this industry is quite low. On the other hand, there are numerous suppliers with no supplier playing a major role that is critical to the company’s business in this
If I were John and Jill’s adviser I would explore sole proprietorships and partnerships, two common and relatively painless ways for persons to conduct business operations. Both these forms of business come with significant disadvantages, however, especially in the area of liability. The idea that personal assets may be placed at risk by business debts and obligations is rightfully scary to most people. Businesses therefore need a form of business organization that provides limited liability to owners and is also flexible and easy to manage. That is where my suggestion of the modern corporation comes in.
S Corporations cannot have more than 100 shareholders. The advantage of an S Corporation is that of course it is owned and controlled by its members. Those members also have limited liability. Those members also have limited liability. The disadvantages of this business organization is that the owners have unlimited liability, difficulty raising additional capital, has charter restrictions can cause conflict between the owners, requires the members to participate continually for success, and extensive record keeping is necessary.
Discussion Board 1 Liberty University Legal Issues In Business BUSI-561 Professor Kathleen Tailer September 14, 2014 Discussion Board #1 Benji Watson’s ethical dilemma is unfortunately not uncommon in society today. Many of the values that were the cornerstone of doing business during our forefather’s time are now considered optional if staying true to said values threaten the profit margin. Benji has to ask himself a couple of questions before he makes his decision. The first question being, “ Can I work for a company that does not share my core values and beliefs?” The next question is a little more difficult to honestly answer when faced with the prospect of a good salary and benefits package fresh out of college, “ Can I remain
TESCO’S CASE STUDY From this task I will be explain the difference between two different businesses and how different they can actually be. These will be studied form the same local area. The two companies I will be studying are Tesco and Ryder store. Tesco’s is one of the largest companies in the world and is the largest retailer in the United Kingdom, its stores are around the world and are in 20 different countries. Its sole and only sector of the market is the third sector (tertiary sector).
• Owner has full control of the business. Disadvantages of a sole trader: • All decisions you need to make • Capital is limited • It is hard to employ people • Partnership A partnership is an organisation where two or more people get their money, skills and other resources together and then share any profit or loss created in accordance with terms of the partnership agreement. Advantages of running a partnership • Businesses doesn’t have to pay income tax • Partners can share responsibilities. • Partners can also share decisions Disadvantages of running a partnership • Disagreement • Taxation • Profit sharing Limited Company A limited company is an organisation which can be set up to run your organisation, the limited company is then responsible in its own right for everything which they contribute in and their finances are spate to your personal finances. Any profit that is produced will be owned by the company after it pays Corporation Tax, this will then allow the company to share its profits.
The only types of business that do not need to carry physical inventory are service and sales organizations. Most of them have small amount of sample items or commonly sold items, however depending on the industry they might not need any at all to function successfully. I look at the inventory as a necessity however I am also aware that there are many cost associated with carrying large inventories so businesses need to have very good inventory management system in place. Many businesses purchase their inventory on credit and must pay interest on the purchases and if they are unable to sell the inventory it might pile up and restraining the organization to purchase new inventory that is needed. The scope of inventory management focuses on the relationships between many things including carrying costs of inventory, asset management, inventory forecasting, quality management, returns and defective goods, demand forecasting and number of others.
Law enforcement and private security have strengths and weaknesses that must be considered to form realistic expectations of what each can bring to partnerships. Private security is often criticized for absent or inadequate preemployment screening, training, standards, certification, and regulation, and high turnover rates. However, recent findings indicate that private security has made gains in these areas.6 Private sector security also has significant strengths. The sheer number of private security officers makes
In the book “The Mystery of Capital”, Hernando de Soto promotes his explanation of why formal capital markets function poorly in developing countries. De Soto argues that much of the population of developing countries lacks access to credit, not because they lack assets, but because ownership of their property is secured informally, which prevents the use of property as collateral. The inability to convert assets into capital keeps the developing world from benefiting from capitalism. According to De Soto, although five-sixths of the world is poor, the poor own these houses, crops, and businesses, but they are all extralegal. Without titles, deeds, and articles of incorporation, the poor cannot use their extralegal property—it is what De Soto terms “dead capital,” capital that cannot legally be used to generate more capital.
With all of those pros to classifying a worker as an independent contractor you have to wonder why businesses choose not to. Along with those many benefits there are also a few disadvantages. Independent contractors, by definition, do not work set hours which means they are free to come and go as they please which could lead to schedule disruption. There are risks of disloyalty to the company that are increased by hiring as an independent contractor because their livelihood is not connected with the business entity. A third major disadvantage is that the “companies may not own the copyrights on materials created by independent contractors” (Durban, 2010).