Private Limited Company Case Study

All sole traders suffer with unlimited liability, which means that they must pay all fines and losses out of their own pocket. This could be anything from covering damages to a customer 's property, over spending, or fines from work overrunning. This means the individual will feel all of the losses and this can lead to bankruptcy if they cannot cover the costs. Examples of sole-proprietorship 's are small self-employed businesses; such as tradespeople, window cleaners and newsagents. A second kind of non-incorporated business organisation is a partnership. There is no upper limit to the amount of individuals in a partnership but it is rarely more than twenty. In order for a partnership to form, a contract must be drawn up and signed

The difference between them is how the shares in the company are sold/available. As the names suggests, the shares in a private limited company are sold privately, and in a public limited company, publicly. Private shares are usually only possessed by people with an interest in the company or works for the company. If someone wants to buy shares in a private limited company, they must contact an existing shareholder and agree on a price for their share(s) to have them transferred to them. Depending on the shareholders and their agreements, some companies require the approval of existing shareholders in order for a sale of shares to go through. Public shares are sold and purchased easier and this is through a stock exchange, with their values constantly fluctuating. The different types are identified by what is after their names. For example Pattern Forme LTD., and British Gas

Broadly speaking, the two main types are hierarchical and non-hierarchical. Therefore each worker/group of workers only has to report to, or take commands from, one person; also known as the unity of command. The workers are usually separated into different sections, depending on what their role is. Matrix structures are the more common kind. They are more flexible and lead to workers reporting to two people, usually a functional manager and product manager. This means if one boss is busy/absent, they can still get answers/feedback easily. Matrix structure of an engineering organisation, divided into projects rather than individual workers. Where the lines intersect (denoted by circles) there would be (groups of) employees and the lines would dictate who they would report