Case Analysis Of A Case Study: Homewares Ltd

Tracey is a former director of a small limited company known as “Homewares Ltd”, which specialises in all household products for kitchens, bedrooms, bathrooms and lounge /dining areas. Tracey has been pushing the business to introduce a new product area of gardens, much to Peter’s displeasure. The board does not approve of Tracey’s plans as they feel the business is not ready to expand due to current affairs of struggle. Tracy has claimed to be suffering from ill health and has left the business. Shortly after Tracey’s departure, Homewares ltd’s supplier has ceased trading with Peter, which has raised Peter’s suspicions this may be the result of Tracey leaving. Homewares has since learned that Tracy has started her own business using Homewares Ltd former suppliers, who also was discovered to be a relative of Tracey.
Tina is also a director of Homewares Ltd who has been absent due to illness. She has also had personal issues which has had a huge impact on her performance in business, which raises concerns for Peter and the other directors. Peter believes that the only option would be to remove Tina as a director as it is hindering the business, however in order for this to happen he is unsure whether enough board members share the same views as him.
A director is a rank in management who leads or supervises in a company. They are usually appointed by the company to run the business and make suitable decisions for the business. In this case study, there are many directors appointed. As a director of a limited company, the law states that you must: try to make the company a success by using your skill set, experience and judgement and follow the company’s rules. Also a director must make decisions for the benefit of the company a...

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...aising capital is difficult because there are no investors and all capital will have to be raised by the owner. Banks are less likely to grant loans to sole traders due to the high percentage of mortality and their lack of high valued assets. The biggest disadvantage for sole traders are that the single owner is liable for all the debts the business incurs and is responsible for everything. This can result in the business being closed and the owner losing his personal assets such as his or hers house. A sole trader also has to work long difficult hours and the business will suffer if they take time of due to illness or any personal holidays. In addition to capital, it is difficult for sole traders to expand businesses due to the lack of investors and shareholders. The owner will have to use profits or acquire another bank loan, which will ultimately increase debts.