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LO1 Knowledge Organiser (Production/Operations (Logistics, Storage,…

- - - - Raise large sums of finance on the stock exchange
      - Stable form of structure
      - Limited liability
      - Firm is prestigious
    - - Shareholders have to agree how profits are distributed
      - Greater administrative costs
      - Finance can be limited by stock market
      - Public can see company information and accounts
      - Risk of hostile takeover
      - Separation of ownership and control
  - - - Stable form of structure
      - Original owners
      - Easier to raise finances as shares can be sold
      - Can attract a range of investors
      - Limited liability
    - - Greater administrative costs than setting up as a sole trader or partnership
      - Finance limited to private investment
      - Shareholders have to agree how profits are distributed
      - Directors legal duties stricter
      - Documentation and accounting methods are controlled
  - - - Inefficient to have more than one producer
      - Government support
      - Can provide a cost effective option for customers
    - - Can be used for political gain
      - Lose sight of cost control
  - - - Small groups can operate as sole traders
      - Larger charities benefit from being a limited company
      - Quick and easy to set up
      - Tax reductions on official charities
    - - Inconsistent funding
      - Formal charities need registering
      - Can be volunteer led
      - Annual accounts provided to both
  - - - Minimal paperwork once setup
      - Partners can provide specialist knowledge and skills
      - Simple to form a business together
      - Jobs can be shared
      - Greater potential to raise finance
      - Any losses will be shared
      - LLP can be created for limited liability
    - - Harder to raise finance than a company
      - Short life as if a partner dies the partnership ends
      - Partners have to live with decisions of others
      - Profits have to be shared
      - Unlimited liability
      - The business is not a separate entity from the individuals
  - - - Profits
      - Legal requirements
      - Decision making
      - Relationships
      - Work life balance
    - - Unlimited liability
      - May not have required skills
      - Can be stressful
      - Difficult to raise finance
      - Heavy workload
- - - - Sales figures
      - Stock control
      - Loyalty cards
    - - Commercial reports
      - Competitors
      - Government
      - Trade publications
      - The media