An Analysis of two businesses :: Business and Management Studies

An Analysis of 2 businesses Level 2 Task 1 Being a partnership is suited to Mount Pleasant Post Office for many reasons. These are concerned especially with: 1) The size of the business being small 2) The responsibility of the owners 3) The way that the profits of the business are shared out Some of the reasons why it is most suitable for Mount Pleasant Post Office to be a partnership are concerned the advantages it gets from being a partnership. These are the advantages this partnership business gets: 1) When this business first started up, it did not need the help of solicitors or accountants. This was because it was already easy to set up. 2) Also there is no-one who will know about how well the business is doing. This way, everything can be kept private. 3) Unlike Sole Proprietorships, more capital can be raised. This is because there are more people/owners to gather money. There are also sleeping partners who don’t actually run the business on a day-by-day basis, but they do provide money when it is vitally needed. 4) Another advantage is that unlike sole Proprietorship businesses, this business has unlimited specialisation. This means that the jobs can be shared out amongst the owners. Certain people who are good at certain things wouldn’t have to bother with the other jobs. Other reasons why it is most suitable for Mount Pleasant Post Office to be a partnership are concerned with the disadvantages it would get from organising itself in a different way. These are the disadvantages Mount Pleasant Post Office would face by being a sole proprietorship: 1) The business would have had limited specialisation which means that the owner would have had to do everything to keep the business going. 2) If the owner fell ill, then he would have to close the complete business for some time. Also if the owner wants to have a break and go on a holiday then he would have to close the business for some time. 3) If the owner is unhappy about running the business and wants to quit, then the business also ends. These are the disadvantages Mount Pleasant Post Office would face by being a limited company: 1) The public would have to be notified about how the business is going by producing reports. These reports are costly to produce even