1. Business Administration
1.1 Identify the features of different types of business organisations

3. Sole Trader
Definition: This is a business that is run and owned by one person.

4. Formation
Can be started immediately if operated under the person’s own name.
If a different name is been used it must be registered with the Registrar of Business Names.(Dublin Castle)
They must apply for any license required by law (pub) and must register and pay/collect any tax – PRSI, VAT.

5. Formation
Under the Health, Saftey and welfare act the respnosibility is put on the owner
To put in place satety measures
By carrying out saftey measures of risks and hazzards
A safety programme much then be written down in a from of a Safety Statement

6. Features Usually small, family run business.
Are the most common type of ownership.
Are common in retail shops and other small business.

7. Benefits of a Sole Trader Business
Speedy decision making.
Flexible hours.
The owner gets to keep all the profits themselves.
They have a high level of privacy about the affairs of the business.
They have more control of the business.
No Industrial Relations.
Suits small families.
Customer friendly

8. Drawbacks of a Sole Trader Business
The owner takes all the risks of the business.
The owner has unlimited liability for the debts owed and may lose their house or other possessions to pay for those debts
Higher trade prices
Larger capital requirement is necessary
The business dies with the sole trader

9. Sources of Finance Loans from banks and institutes Personal savings
Hire Purchases
Good credit terms

10. PARTNERSHIP
Definition: This is a business that is run by between 2 and 50 people

11. Formation
Can be started immediately if the business is going to operate under the partners own names.
If a they trade under a different name, then this name must be registered with the Registrar of Business Names.
They do not have to make a written agreement when they go into partnership but it is best that they do.

12. Formation There can be four types of partners
A written partnership agreement is called a Deed of Partnership and sets out
How the partnership will be run
How profits will be divided
And how decisions will be make
There can be four types of partners
Active Partner
Sleeping Partner
Quasi Partner
Limited Partner

13. Formation
On dissolution of a partnership the following procedures are followed
All assets are revalued and sold
Creditors are paid off
Quasi partners loans are paid off
Capital is repaid to the partners
If there is any profit left it is divided according to the profit sharing ratios

14. Active Partner
This is a partner who participated fully in the business

15. Sleeping Partner
This is a partner who invests money into the business but doesn’t taske an active part in the running of the business

16. Quasi Partner
This is a partner who leaves their money in the business as a loan when they retire
They are then earn interest on the loan once the profits have been calculated

17. Limited Partner
This is a partners who debt is limited to the amount of capital which they have invested ( Limited partnership Act 1994)
There must be one limited partner in a partnership

18. Features
General partner have unlimited liability for the debts and can be sued as result of the actions of the business.
Partnerships are commonly formed by
Architect
Solicitors
Accountants ect but anyone can form a partnership

19. Benefits of a partnership:
Partnerships are easy and inexpensive to form
Risks are shared
Different partners can bring different expertise to the business
They partnership can get capital from a number of owners
Partnerships are subjects to few regulations
Accounts can remain confidential

20. Drawbacks of Partnerships:
The partners have unlimited liability for the debts of the business
If a partner dies a new partnership must be formed
Disagreements can arise
Decision making can be slow
Personal guarantees form the partners may be needed to secure bank loans

21. PRIVATE LIMITED COMPANIES (Ltd)
Definition: This is a business that has up to 50 owners (shareholders) who operate the business with the benefit of having limited liability.

22. Formation:
To form a Private Limited Company the following steps must be followed

23. Step 1 All of the necessary documents must be prepared, such as
The Memorandum of Association – sets out how the company will related to the outside world
The Articles of Association – sets out the internal rules for running the business

24. Form A1
The company’s registered address
A Statement of the authorised and Issued share capital
A list of directors of the company
The written consent of each of the directors to act as the director
A signed statement that the company will comply with the provisions of the Companies Act

25. Step 2
Step 2 - The documentation with the relevant fee is submitted to the Companies Registration Offices (CRO) (75 euro – online registeracompany .ie)

26. Step 3
The CRO checks that all the documents are in order and then issues a Certificate of Incorporation for the new company

27. Step 4 The Company must hold its first Statutory Meeting at which
The Articles and Memorandum of Association are presented
Share certificates are given to the share holders
The directors of the company are appointed
A firms accountant is selected to audit the company’s accounts
Authority is given to open a bank accounts in the company’s name

28. Step 5
The new company can now start trading as a legal entity separate from the owners of the business

29. The Memorandum of Association
This document shows information of a company for any individual who wishes to know about the company. It shows the following
The name of the company including the word ‘Limited’ at the end
The registered address of the Company
The objective for which the company has limited liability
Details of the authoried shares capital
The signature of each subscriber which is witnessed

30. The Articles of Association
This Documents sets out the internal rules for the running of the company. Such as
The share capital structure of the company
How meeting of the company are to be conducted
The voting rights of the shareholders
How additional share will be issued of existing share transferred
How directors will be appointed and what their duties and powers are
How the company can be wound up

31. Features
The Ltd is a separate legal entity from its owners and it can sue and be sued in its own name
Capital is invested through the purchase of shares which represents part ownership of the business
Ownership is limited to 50 shareholders
The company has the word Limited added to its name
The owners of the business are called shared holders
The shareholders have limited liability or the debts (only lose the money invested in the shares if the business fails)

32. Features
Shareholders make major decisions by voting at the AGM (Annual General Meeting) They have one vote for each share owned
The share holders elect a Board of Directors who take on the running of the business. They must act within the objective set out in the Memorandum of Association. If they do not they are acting Ultra Vires (outside their powers)
The Board of Directors elect a Chief Executive Officer (CEO) or a Managing Director (MD) to manage the day-to-day running of the business
Limited Companies are regulated by the Companies Acts
The company’s accounts must be audited annually – they must be certified by an auditor (external accountant)

33. Benefits of a Private Limited Company:
The company becomes a separate legal entity from the owners
The share holders have limited liability
More capital can be raised
A better credit rating means that the company will find it easier to get loans from the bank
The continuity of the business is assured
The company has the ability to expand through borrowing and additional share capital

34. Drawbacks of a Private Limited Company:
There are a lot of formalities in setting up a Ltd
There are costs involved in setting up and running a Ltd
Accounts and annual reports must be sent to the CRO each year which are available to view by the public
The company must apply with many regulation
Shares can’t be sold freely to the general public
Creditors are exposed of not been paid it the company closes down
They may be conflict between the shareholder (who own the business) and the board of directors (who run the business)

35. PUBLIC LIMITED COMPANIES (PLC)
Definition: This is a company that has at least 7 share holders and whose share can be bought and sold freely (stock exchange)

36. Formation:
The business gets a certificate of incorporation form the CRO to form itself into a limited company
It then applies to the CRO to form a PLC by submitting a statutory declaration of the amount of share capital being issued
At least 7 shareholders must be willing to invest
The CRO issues a trading certificate
The company may also apply to the stock exchange for a quotation/listing.

37. Features of a PLC:
The letters PLC are placed after the name of the company
There is no limit to the number of shareholders in the company
The Plc are subject to many regulation – Companies Act and also requirements of the stock exchange (if listed)
Annual returns must be made to the CRO and the annual accounts must be published

38. Benefits of a Public Limited Company:
The company has unlimited access to finance for expansion
The company can raise finance internationally
Getting a stock exchange listing is a major boast to the image of the company
PLC can attract the best managers (status)
Free publicity (media)
PLC can reward and motivate top managers (share options)
The company can use its shares as a form of payment when taking over another company
PLC usually have good credit ratings

39. Drawbacks of a Public Limited Company:
The cost of setting up or floating a PLC is very high
The cost of running a PLC can be high
The company must make a lot of information about its activities public and publish their accounts
They may be conflict between the shareholder (who own the business) and the board of directors (who run the business)
PLC are targets for takeovers by other firms.

40. COOPERATIVE SOCITIES
Definition: This is a business that is run democratically by at least 7 owners who share a common interest – Farmers, Credit union

41. Formation: Certain procedures must be followed
An application to form a co-op must be made to the register of Friendly Societies
At least 7 members are required each subscribing capital
On receiving the permission of the register of friendly societies the co-op can start trading

42. Features of a Co-op
Co-ops are regulated under the industrial and Provident Societies Act
Annual returns must be made to the register of Friendly Societies
Co-ops are democratically run with each member having one vote only at the AGM
The members elect a management committee to run the business and make important decisions
The members have limited liability
Profits are distributed to members on a proportionate basis
The member of the co-op may be suppliers/customers or workers in the co-op and can influence the success of the business

43. Benefits of Co-operatives
As members have common interests there is a high commitment to the success of the business
The business is run on a democratic basis – everyone is equal
Co-op have a good credit rating with banks
The members have protection of limited liability

44. Drawbacks of Co-operatives
They are subject to a lot of rules and regulations
Annual returns and audited accounts are required by the register of Friendly Societies
There are a lot of formalities in setting up a Co-op
Members of a co-op find it hard to get a market for their shares if they need to raise capital
It may be hard to find new members with the same interests which results in limiting finance for expansion

45. CHARTIES
Definition: Is a non-profit organisation that must be constituted and operated for a charty purpose
Under charitable law the organisations objectives must be percise and not in broad or vauge terms

46. Formation
There is no legal framework for registeration of charties in ireland
However the Office of the Revenue Commissioners (Charties section) keeps a database of Organisations who have tax exemptions
A CHY reference number ie then allocated to the charity

47. Features These organisation usually take three legal forms
An unincorporated association with a constitution or rules
A charitable trust established by a trust
A company Governed by a Memorandum and Articles of accociation

48. Features Caring Groups are also not-for-profit organisations
Their services also consist of advice and counselling given by qualified trained volunteers
These organisations rely on funding from donations and rasied through activities and events