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LACC BUS 1 - BUSINESS FEATURES AND TYPES OF OWNERSHIP

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A worker cooperative is owned and run by its workers and itcan be controlled in multiple ways.According to howstuffworks.com “a charitable trust is a set of assets -- usually liquid -- that a donor signs over or uses to create a charitable foundation.”Voluntary organisations are non-profit and rely heavily on atleast some workers working for free because they do it for the cause such as a soup kitchen who provides food for the homeless or strugglingWhat are worker cooperatives charitable trusts and voluntary organizations?Worker CooperativeWorker cooperative businesses are owned and run by their members, the people who work in them, and they operate for the benefit of these members. This is where everyone has a share of the company and are working towards the same goal.Charitable Trust According to (https://money.howstuffworks.com › economics › volunteer › starting-a-charity) a charitable trust is a set of assets usually liquid that a donor signs over or uses to create a charitable foundation.Voluntary organisationsVoluntary organization, common-interest association, is a group of individualswho enter into an agreement, usually as volunteers, to form a body to accomplish a purpose. They do this to support a local fund or communityWhat is meant by primary, secondary and tertiary sector businesses?Primary sector businesses collect raw materials for example coal, metals and food items this can be called extractive production. Secondary sector business is the manufacturing and assembly process of raw materials for example making plastics from oils. It also involves assembling the product e.g. building houses, roads and bridges. Tertiary sector businesses support the production and distribution process e.g. insurance, transport, advertising, warehousing and other services such as healthcare and teaching Sole trader and partnershipsPartnerships can be a business ran or operated by 2-6 peopleSole traders have unlimited liability which means they can lose more than they have put into the firm like property and vehicles if the business goes bankrupt whereas Ltds and plcs have limited liability which limits what they can lose in case of failure in the business so they can only lose what they have put in.Sole traders have all the shares of a business which means more profit for them but also a bigger workload which could make the business suffer but in a partnership, the owner would have to share out the profit and also pay any nccccccccccccccccccccccccccccccccccc workers which would limit the income for the owner but make the business easier to run and be successful.Ownership and liability of businessePrivate limited companiesFirm under private ownership, can sell its own privately held shares to a few willing investors. The stocks of a private company are owned and traded by only a few private investors. Public limited companiesLimited liability Company, can sell its ownregistered shares to the general public. Thestocks of a public company are traded on stockexchanges 1. Primary, secondary and tertiary sectors2. Limited and unlimited liability1.Primary sector- this sector is based around the production of raw materials and basic foods such as agriculture, mining and huntingSecondary sector-the secondary sector produces the raw materials gathered by the primary sector and turns them into products. This includes heavy manufacturing, oil refinery and food processing.Tertiary sector- The tertiary sector is the third sector of the economy which provides the goods and services to consumers this includes the retail sector, hospitality sector and telecommunications. kezzzzzzaaaaaa2.Limited and Unlimited LiabilityLimited liability means that the business is responsible for any debts that are incurred and the owners are not personally responsible. This means the owners will not lose any of their personal assets to pay off a debt. Shareholders of public and privatelimited companies have limited liability and can only lose what theyhave invested. Unlimited liability means that the owners of the business are personally responsible for any debts that need to be paid. This means personal assets like cars and potentially houses can be soldto pay off a business’ debts as the owner and the business are seen as the same thing under the law.Private business :In this structure a business is owned by usually family and friends. The businesses stocks are not sold publicly on the stock market. Private businesses are not owned by the government however can be hired for theirservice goods. Usually they are full profit businesses because of their lack of affiliation the government. Different firms: ● Local Firms-A company which provides goods or services to a local population.● National firms-A type of company that has a customer base across a nation and provides a variety of commodities, goods, products or servicesthat are needed to a nation and national population.● International firm-International companies are importers and exporters, they have no investment outside of their home country. Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. Sole Traders and PartnershipsSole Trader sA sole trader business is simple and easy to form and is ran by one individual. The owner is responsible for his own liabilities. The owner also has all the decision making power which gives them a lot of freedom. If the owner wants to stop it is easy to dissolve theirbusiness because they don’t have to consult with any partners. PartnershipsIt is easy to form a partnership. There will be more capital than a sole trader to spend on new materials to improve their business. There are more people which means there is more skill to develop ideas. They also have unlimited liability which is better than a sole trader. What is the difference between private firms and public owned organisations?A private firm is a firm or business held under private ownership. The company can have shareholders however the shares are not traded publicly.A public owned organisation is owned by the government, they provide goods and services in the community . They operate with money raised from taxes.What is the difference between local,national and international firms?Size varies between all these firms as local firms are more likely to be smaller with less experience and have smaller


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