In this section I will look at the public and the private sector in the different types of business ownership.
Business’ which are in the private sector means that they are owned and run by individuals. There are different types of ownership; there are small and large businesses. These business’ are run so that the owner will make a profit.
These are owned and controlled by the government (the state). These businesses provide a service for the general public. The money raised by the public, by paying taxes goes toward the funding for these businesses.
There are many reasons for privatising these include, to raise money to fund other services. Another is to increase efficiency; this means they want good effectiveness against another companies, this also means that the owner can do what they want. Another reason is to spread wealth through shareholders. Also they want to generate competition with other companies so that they can they can make a profit because they can get more customers.
A limited liability means you only use your original investment. For example, if you own a business and it collapses the bank can only take the money back that you own them and no more.
This means that the owner is responsible for all the debts. If the company fails you have to pay its debts or declare bankruptcy. The person you owe money to may take all your belongings or you have to sell all your personal belongings to pay that money back.
There are many advantages to become a sole trader because it is easy to set the business up. Another reason is that you are your own boss so there is nobody to tell you what to do. Also you keep your own profit so you get the most out of it. Another reason is that the decisions are easily made up. Every thing i.e. financial documents are all secret.
However there are many disadvantages these include long working hours. Another reason is that there is difficulty to raise a capita. Also if any thing goes wrong then you could lose everything (an unlimited liability business).
In a partnership you can have form 2 to 20 people this may mean that there might not be equal shares in the business.
There are many advantages for a partnership these include more skills, another is that it is easier to raise money because there is more than one of you(capita) also all your problems are share this means that if your business needs money the bank will more likely to give you the money than if you were on your own.
There are also many disadvantages these include disagreements in ideas, etc. another reason includes that the profits have to be shared so you don’t get maximum profits. Also your business loan (or capita) is unlimited liability so everything is you own will be lost. Also all the decisions made are slower so it takes a longer time.
Private Limited Company (LTD)
These companies are usually owned by friends and family members.
The advantages in this are that it is a limited liability business. Also the owner control what happens. Accounts are private so that no body can check your business documents apart from you. Another reason is that owners usually work the business therefore you don’t have somebody else as an owner. Also the setting up is also easy.
There are many disadvantages these include more ‘red tape’ this means that you have to register but not have the same name as somebody else. Another reason means that you have to comply with Companies act; this is the law that regulates LTD’s. Also you have to vote and in the way that if you have one share you have one vote. Another disadvantage is that if you only have one share means you only have one vote.
Public Limited Company (PLC)
On a private limited company you are listed on a stock exchange if you own a share also anyone can buy the shares. A stock exchange is where you buy and sell shares.
An unlisted plc is where they don’t sell shares to the public because it is not listed on the stock exchange. It has limited liability this means that you can only lose what you have invested.
There are many advantages these include limited liability this means that you only lose what you invest. Another reason is that share capita (share prices go up company gets better). Also economies of scale (buy lots of things) also there is an increased source of capita so it is easier to borrow money.
There are also many disadvantages these include external regulation this means there are a lot of rules and restrictions. It is slow to make decisions because everyone has to know. You have to pay dividends, this means that if you own one percent of the share you will receive one percent of the profit. Also you loose control this means that you would not be able to have a proper control because you have to let everyone know and everyone would have to vote.
When the business makes a profit, all the profits are shared by the workers.
There are many advantages these include joint decisions this means that you can have your say to what happens. Can be a limited company therefore you only pay back what you own the bank (limited liability). Commitment this means that the workers are committed. Also you are not forced to be owners.
However there are many disadvantages these include difficult to raise external finance (funds) from places such as banks. Slow decision making this means that it takes longer to make a decision as everyone has to have a say. Business decisions verses social beliefs this means that you can be against something but for the sake of the business you have to do it. Some people have a lack of business skill.
This means a well known business will allow, ‘sell’ the right to trade under their name. For example Spar might give the right to a business man.
There are many advantages these include high success rate. Help and support from the well known business. Fewer decisions to make as they are already made for you. Easier to raise a capita as you have the well known business’s name. Protected by BFA code, the BFA code is the British Franchise Association it is good to have protection from them as they will raise a complaint for you and look it up and it stops you from misleading.
However there are many disadvantages these include share in the profit so you don’t have all the profits you make. Lack of freedom so you cannot do what you want. Dependant on franchisor so if you want to have your own business because you are so dependant on the franchisor you don’t know if you are making the right decision as you don’t have the support.
The promethean are privately owned Ltd this means that the owners are manly friends and family of the actual owner and the public cannot buy the shares.
. This means that they are a limited liability company therefore if the business collapses then they only pay back the bank what they own. The advantages of forming an Ltd are that it is a limited liability business, the accounts are private, owners usually work the business and the setting up is also easy.
However there are many draw backs these include ‘red tape’, you have to comply with the companies act, and another drawback is voting in the way of one share is one vote therefore the person with the biggest share will outvote the rest.
The drawbacks of forming an Ltd are they have to comply with more regulations, have to register with the Registrar of Companies, you have more ‘red tape’, and because one share equals one vote, a share holder with more shares will out vote every body else.
The legal requirements are to recycle waste and to dispose waste the right way, also to be environmentally friendly. They also have to comply with the Companies Act
The history of the company is in the 1970s the business was called TDS (Terminal Display Systems) Cadgraphics and was distributors of graphic printers. Later on they also distibuted digitisers and projectors. The whole business was owned by Tony Cann. In the early 1990s R&D looked into the sales of other products.
Tony Cann had a financial interest in an American company Numonics that sold interactive whiteboards in the USA. This company didn’t make the most of the opportunities available and so TDS decided to try and sell Numonics interactive whiteboards in the UK. As the UK government were investing in UK technology this seemed the best time to do this. The government were committed to making the UK the benchmark in technology.
TDS engineering department re-engineered the product and improved it to the product they have today.
The whiteboards started to be manufactured in Blackburn in 1996 and the company Promethean was set up in order to be dedicated to the manufacture of interactive whiteboards.
The owner with the most shares is Tony Cann is still the Chairman although he is semi-retired and he is still the main shareholder. Apax Partners Venture Capitalists own some shares.
Blackburn rovers are an unlisted Plc; a plc is normally listed on the stock exchange so anyone can buy stocks, Rovers are a unlisted plc so therefore the public cannot buy the shares. A stock exchange is where you buy and sell shares. The word Plc means Private Limited Company.
The liability that Rovers have is a limited liability this means that they can only loose what they have invested.
The advantages of forming a Plc are limited liability, share capita and increased source of capita.
However they do have some drawbacks these include external regulation, slow to make decisions, have to pay dividends and you can loose control of the business.
The legal requirements of the business at least ï¿½50,000 worth of share capita which at least 25% must have been paid, also there must be at least two share holders, two directors (one of whom may also be the company secretary and a certificate of entitlement (the trading certificate) to do business and borrow capita.
A business floats is when the general public such as private individuals and large organisational investors buy share of the company, businesses do this so that they can make a profit and raise more money.
The history of the company is, in the 1800s there was a demand for football and people not only wanted to play football but they wanted to also watch and because most people worked on Saturday mornings in the mills and so wanted to relax on a Saturday afternoon and enjoy themselves. There wasn’t much money around so therefore football was a cheap activity as there was no official ground and the costs involved in the upkeep of a stadium thwaites were the sponsors then.
There are many people who run Rovers. These are made up of 5 trustees who are given the responsibility of overseeing the running of the club after Jack Walker’s death. The Jack walker trust is the major share holder since Jack Walker’s death, they own 99.9%. The Walker family form part of the Board of directors. The other directors own the remaining 0.1%.
Although Blackburn Rovers run the day to day activities they still have to report to the trustees. Tom Finn is the Managing Director responsible for most of the day to day operations of the club. The trust set annual budgets along with the Rovers Board.
John Williams is the club Chairman responsible for football business and operations together with a focus on strategic schemes, including an appraisal of the opportunities for new investment into the club. David Brown is Vice Chairman who will provide a link to the shareholders. Robert Coar and Richard Matthewman are non-executive directors. The Vice Presidents are Iain Stanners, George Root, Keith Lee and Milton Jeffries.