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Business Organisation Structures - Coggle Diagram
Business Organisation Structures
New Businesses
Sole Trader
Unlimited Liability
Complete Control
Personal savings,loans,grants
All profits kept but taxed at 20% or 40% under self assessment income tax
Ceases to exist if owner: dies, closes, or retires.
Partnership
Shared decision making
Unlimited Liability and responsible for each others debts
Shared profits with self assessment income tax
All partners contribute finance and new partners add more
Ends if dissolved or one leaves or dies.
Private Limited Company
Designated activity company
1-149 shareholders
Limited Liabillity
Specific Commercial like Bank
Memorandum of Association
articles of association
Mandatory AGM
Company limited by guarantee
1-unlimited shareholders
Limited Liability
Mandatory AGM
Memorandum of Association
Articles of Association
Used by charities
Company Limited by Shares
Does not need AGM
Limited liability
Constitution document
1-149 shareholders
Commercial Activity
Unlimited Company
Memorandum
Article
Unlimited Liability
1-unlimited shareholders
Commercial but owners want to keep finances confidential
Mandatory AGM if more than 2 shareholders
Co-Operative
1 vote per person
Limited Liability
Equity Finance raised with shares bought by co-op members
Members control business
Profits shared with corporation tax of 12.5%
Dissolved by agreement or bankruptcy
State-Owned Enterprise
Board of Directors selected by Government, CEO selected by BOD
Limited Liability
Profits go to government unless reinvested
Costs supplied by government
Dissolved if privatised or shut down
Business Expansion
Strategic Alliance/Joint Venture
Shared control
Shared Profits
Limited Liability
Agreed Investment
Ends after completion of time frame or project
Franchise
Follows guidelines off franchise
Annual fee plus a share of profits to franchisor
Limited Liability
Dissolves if agreement breached or mutual consent
Franchisee provides most of the finance
Public Limited Company
Limited liability
Profits shared through dividends
Finance traded on stock exchange through shares
Dissolved from bankruptcy