Business Forms Available Under UK Law - Essay Example

Revision Questions s Business Forms Available Under UK Law. a) Sole trader business These are forms of business run and owned by a single person. Unlike other forms of business, sole trader business is not complex since it does not require too much paperwork. Since the sole trader has, no limited liability implies that he is responsible for all the debts incurred in the business (BIS, 2011, p. 3). Characteristics The sole trader possesses all the assets of the business. He or she is directly liable to any debts incurred by the business. The business is easy to dissolve since no formalities or paper works are required. Examples of some of the most known sole trader business include the Donald Trump organization, owned and managed by Donald trump who is also the founder of Trump entertainment Resorts. b) Company This is an association of individuals united by a common objective and normally come together with the intention of achieving specific goals. Companies are in two major categories; private and public. The difference between these two is that whereas public companies have the right to sell their shares to the public, private companies do not and neither do they trade their shares in stock exchange (Liu Post, 2014). Characteristics of public companies Have the right to sell shares to the public. Can trade shares in the stock exchange. Have a limited liability status. Characteristics of private companies Do not trade shares in stock exchange. Only requires a maximum of fifty members. Normally run and owned by family members and relatives Examples of public companies include Microsoft and IBM while private companies comprise of Cargill and Publix. c) Partnership This is a single business whereby two or more persons share ownership (BIS, 2013, p. 3). In this business, it is a requirement that each member participates in the contribution of all aspects such as capital, skills and labor. Partnerships are in three categories; Joint ventures, General and limited partnerships. In the general partnerships, profits made are shared equally among members. In limited partnerships, profits are shared depending on each partner’s investment. Conversely, joint venture is similar to general partnership only that it is for a short period. Characteristics Two or more persons own the business. An agreement exists between members of the business Each partner is to offer his or her contributions according to the agreement. An example of one common partnership business was that of Steve Jobs and Steve Wozniak who came together and formed the Apple Company, which has a global recognition for its electronic devices. 2. Marketing Communication Promotional Mix This is a method applied by companies in pursuit of marketing and advertising objectives. The main elements of marketing mix normally comprise of advertising, direct marketing, sales promotion, personal selling and public relations (Havalder, 2010, p. 291). Advertising involves presentation of products by a company to prospective clients in a bid to increase sales. An example of advertising includes the use of testimonials where the company uses a famous person to talk about the product. Through advertising, a message reaches the target audiences and normally results to the generation of feedback from the customer in form of sales. Personal selling normally involves face-to-face contact between a seller and buyer where the seller normally persuades the prospective buyer to make a purchase. For instance, demonstrating to a buyer the benefits associated with the purchase of a washing machine. This method improves the selling environment since customers are more exposed. Sales promotion comprise of marketing activities taken in a bid to boost product sales. Examples of sales promotion include offering of discounts, commissions and incentives. Through sales promotion, marketing demand is stimulated. Public relation entails a strategic communication technique that results to the building of mutual relationships between a company and its clients. Through public relations, a relationship between an organization and the public is created. Direct marketing is an advertising technique where physical marketing materials are availed to consumers for clear communication of the product. This can be through door-to-door selling, telemarketing or through email. 3. Importance of Good Selection Decision Making Proper selection making is of great importance to an organization since it is through this that the company is in a position to obtain highly qualified personnel. This results to successful business operation in addition to achievement of set organizational plans and policies (Talloo, 2007, p. 256). Selection Methods The most common selection methods include Advertising, Direct mail and telephone (Nartey, 2012, p. 19). The advertising method can be used both to advertise the products in addition to selecting participants. This method is beneficial since it is cheap and convenient. Similarly, selection via mail is cheap and convenient but unlike advertising, only few people can be reached hence low return rates. The main advantage of using telephones as a selection method is that it is straight forward in addition to being cheap and convenient. It also results to high return rates since most people own telephones hence will get the information and respond on time. References BIS. (2011). A Guide to Legal Forms of Business. [Online]. Available at: . [Accessed 3 May 2014] . Havaldar, K. K., & Havaldar, K. K. (2010). Business marketing Text and cases. New Delhi, Tata McGraw Hill Education Private Ltd. Liu Post. (2014). Public vs Private Companies. [Online] Available at: http://www2.liu.edu/cwis/cwp/library/cbr/publicvprivate.htm [Accessed on 7 May 2014]. Nartey, E. D. (2012). Recruitment and Selection Practices of Organizations, A Case Study of HFC Bank (GH) Ltd. [Online]. Available at: . [Accessed 3 May 2014]. Read More