Business ownership

1) Sole trader – earliest form of business, owned and managed by one person (hired staff – not proprietors).

Registration in trade register, license, books reflecting the results of business activities.

Advantages:

- easy to set up

- confidential finances

- sole possession of profits

- freedom in decisions

- personal service,can adapt to social needs

Disadvantages:

- unlimited liability(responsible for all debts himself, can be made to sell his posessions)

- limited capital for new projects

- tied to business

2) Partnership (unlimited) – joint property and capital of its members (up to 20 people), profit distributed proportionately to the share of participation, equal and collective responsibility;

(limited or sleeping) –if at least one working partner with unlimited liability,others can invest capital in a firm-they don’t work,but share in profits and losses(but up to the amount they have put in)

Registration: name of 1-2 full members, must not add ‘Ltd.’

Advantages:

- more capital available

- new ideas

- easy to form-no complex legal problems

- sharing of work

- losses shared

- specialization in professional partnerships

Disadvantages:

- limited capital for a large scale business

- disagreements possible

- unlimited liability

- no continuity (part-p breaks up on death, retirement, bankruptcy)

3) Private limited company – number of people (more than 20) invest money by buying shares (cannot be sold through Stock Exchange, only to people of whom the director approve, board of directors appointed, dividends paid on each share if company makes profit.Shares can be partly paid.Shareholder is liable only for invested by him money.

Registration:

Memorandum of Association (Company and its dealing with outside world/sets out name Ltd., type, total share capital, kind of shares)

+

Articles of Assocation (rules how the company run internally: powers, duties of directors, staff, salary, issue and transfer of shares)

sent to Registar of Companies

=

Certificate of Incorporation(permission to start trading)

Advantages:

- more capital than partner-p

- limited liability

- continuity

- legal position as company

Disadvantages:

- expensive to set up – heavy legal and accountancy fees+ large government stamp duty

- shares cannot be sold to public-may limit capital

- expensive to audit accounts carefully

4) Public limited company – more than 2 shareholders (no maximum),minimum capital – 50 000 f., shares can be advertised and sold to the public, operates on large scale (must reveal activity to the public).

Registration:

Memorandum of Association + Articles of Assocation + Prospectus (set out for public company’s aims, background)

=> Registar of Companies => Certificate of Incorporation(But cannot start trading yet)

- Company makes public offering – advertising for sale(public issue) or selling shares privately to pension funds,insurans comp(private placing)(for enough capital) =>Can apply for Trading Certificate,get it,start the bussiness

Advantages:

- almost limitless capital (shares)

- large scale of operation (huge projects undertaken)

- limited liability (to the amount of investment)

- continuity

- legal identity of the company

Disadvantages:

- expensive and complex to set up

- critics of management by shareholders may hinder the progress of the company

- inflexibility, inefficiency of management, overstaffing

- much information must be revealed(companies Act 1967-large corporation can work against government wishes)

- liable to takeover bids and political pressure

12.Структура компании (история создания, основные направления деятельности, этапы развития, производственные мощности, иерархия, основы успешной деятельности на примере компаний Shell/ Colgate-Palmolive/Proctor &Gamble).

= 22

Иерархическая структура компании, основные отделы их функции (отдел по работе с персоналом, отдел маркетинга, научно-исследовательский отдел, производственный, отдел по связям с общественностью и др)

= 22

Способы подбора персонала. Агентства по подбору персонала. Резюме. Сопроводительное письмо (структура, содержание).

Curriculum vitae – key information about individual’s educational background, previous work experience, skills and personal qualities.

CV:

- personal/contact information

- academic background

- foreign language abilities

- clear to read, present an attractive image

- not too long

- chronological or functional order

- interesting features highlited

Covering letter may be attached to create a good impression (so that the recruiter will want to read CV):

* briefly: where you heard about the job and why you fit it

* confirm your wish to apply

* information you learned about the job

* formal tone of the text

* no mistakes

* concise and precise

* why you are interested in the position

* possible contribution to the job (highlight relevant skills)

* indicate willingness to attend interview

Recruitment:

- advertising the position in a newspaper (appointments section)

- people apply for the job

- send in a letter of application (covering letter) and CV (details of their education and experience)

- company may also ask candidates to complete application form

- HR department selects most suitable applications and prepares short list of candidates

- invites applicants to attend an interview

Alternative: services of a recruitment agency (US search firm) – provides company with a list of suitable candidates;

may act as a consultant or organize testing and simulations to evaluate the candidates' skills.

A number of companies are not satisfied with traditional job interviews. When the candidate could gain the post only with a good prepared answers and representative look. Now employers want to evaluate candidates on intangible qualities:

- creativeness or entrepreneurial spirit

- leading or coaching skills

- flexibility and capability of learning

- functioning under the pressure

- fitness to corporate culture

They are requiring applicants to submit to a series of:

- paper-and-pencil tests (general intelligence)

- role-playing exercises

- simulated decision-making exercises

- brainteasers

Others put candidates through a series of interviews by psychologist or trained interviewers.

Possible questions:

“Who is the best manager you ever worked for and why?”

“What is your best friend like?” – can understand your behavior pattern and managerial style

The mistake can cost for the company a huge sum of money.(lead to corporate downsizing)

Aims of comprehensive testing – to measure skills in:

- communication

- analysis and organization

- attention to detail

- personality traits and motivations

This can predict applicant’s performance.