There are a lot of types of organizations in UK today, but most common are sole trader, private limited company, government, partnership, public and Public Limited Company.

The simplest structure is the sole trader. It is easy to start. You just register your business name and able to start trading. Such types of organizations are funded by only one person. All processes are managed by you and all profit is belongs to the sole trader (after paying tax) because it is funded by him/her. As result the owner has to accept a risk and be able to lose money. The profit depends on activity. Examples are: small shops, professional lawyers, service businesses, farms, doctors, etc.

The next way is a partnership. This means that company is funded by two or more people (but maximum is 20). Partner is an individual who has equal responsibilities and share profit and management. Each member has to pay tax. Sometimes doctors, accountants, lawyers unite and organize partnership company.

Private Limited Company is a non-government organization. Its shares are not listed in stocks and it is owned by small numbers of members. It is able to sale shares to customers but not the general public. As a result they tend to be small as to raise funds they need directors to act as guarantors for loans. The company is managed by two or more directors. Usually such type of company is used by families. The most famous and success private limited company in UK is Virgin.

Public limited Company is a type of company used in UK and the company provides limited liability to its management and owners. In contrast to the private limited company, public one is able to sell shares on public exchanges and stocks. There are several criteria to be PLC. The first one is the minimum share capital and the number of directors. It has not to be less than 50 000 pound and less 2 directors. Also every company should take PLC symbol in the end of the name.

Government organizations are owned by country usually they have more permission in inside and sometimes in international markets too. To be a government company state should have more than 51 % shares of company and company managed by state. Usually many railway and transport company are government companies.

Franchising is a more difficult form of incorporation. Usually in this type of organization involved two different companies. One gives permission to use their brand, other rents this brand. So the first company has a profit from selling brand. Examples are: McDonald’s and Subway.

1.2 Describe the extent to which an organization meets the

Objectives of different stakeholders.

Individuals, groups, government and all other members who are interested in an organization are called stakeholders. The power and interest of different stakeholders are different. Interest stakeholder is determined by his desire to influence the organization.

Therefore, the scheme of stakeholder:

The Influence of the stakeholder = Power X Interest.

Stakeholders dived into three groups:

Internal ( Directors, Managers, Employees)

Connected (Shareholders, Customers, Adviser, Competitors)

External (Government, Local Community, pressure groups, Media)

Internal stakeholders have a direct and immediate impact on the company.

External affect the business indirectly.

An interest and an influence of different stakeholders.

Shareholders

Shareholders people who have invested money in the firm, obviously they are waiting for financial return. They are interested in the growth of profits of the company and its annual dividend. If shares were purchased with speculative purposes, then shareholders may be interested in the growth of their prices to the further resale of shares to cash in on the difference in the costs of buying and selling.