Business Planning And Structures Essay

5458 words - 22 pages

Business Planning and Structures

The main structures that shall be examined in the context of this
venture are: partnerships, joint ventures, companies, trusts and sole
partnerships. For the purposes of the investments under consideration,
there could be a number of structures that might be applicable for
each but not all will be necessarily as efficient. The most probable
structure that might be utilised to facilitate each investment is as
follows - implement the retail business as a sole trader, farm as a
partnership or joint venture, joint venture or company for the
speculative mining venture and set up a trust or company for the long
term investment portfolio. The rationale will be elucidated below.

A Retail Business

The retail business is usually associated with being a sole trader
owing largely to the fact that there are few legal formalities,
negligible costs and relatively simplified direction taxation
associated with its establishment. Further, any profits made will be
used entirely at the sole trader's discretion, so theoretically
speaking, the father could install himself as the sole trader and
distribute profits at his appraisement. The negatives, of course, lie
in the fact that it would be difficult to raise a large amount of
capital and, more importantly, should anything untoward occur, there
is unlimited liability on their part. For a retail business, this
would be ideal, however, should it become a large, on-going concern,
perhaps incorporation would be more advantageous, for example if one
needs facilitation for franchising. Also, should the father or
sole-trader die, the business will also end which is not necessarily
in keeping with the implicit intentions of the formation of the
business. A partnership might have been successful but in the context
it might be unwise given that it would be easy for taxation problems
to arise with distributions among the children, although financing the
venture would be much easier.

A Farm

If the family is considering primary production as an investment, the
optimal structure for operation would probably be a partnership
although a joint venture may also be used. The advantages of operating
as a partnership are that there are no partnership taxes to be paid,
only individual income tax, the ability to borrow more capital than a
sole trader and the fact that partnerships are informal and
inexpensive to establish. On the downside, there is, similarly to a
sole trader, unlimited liability for the partners and each partner is
responsible for every other partner's liability, should the business
investment fail. There is also the same issue of the partnership being
dissolved upon the death of either of the parents assuming they are
both partners. As mentioned above, each of the partners is an agent
for another, a situation which could be financially perilous given
that the children may not have sufficient business acumen to conduct a
farm and...

Find Another Essay On Business Planning and Structures

Explain the importance of business planning to the survival and growth

1657 words - 7 pages Explain the importance of business planning to the survival and growth of organisations. A business plan should always for a business start up, the use of the business plan should not stop there, and businesses should be planning constantly in order to run their business effectively and efficiently. Businesses have to think about how they are going to plan for survival or growth, therefore they need to do business planning, to help the

Changes in the business environment and labour market affect Human Resource Planning (HRP).

1980 words - 8 pages marketplace.HRP is important because the HR plan affects all HR activities and acts as the strategic link between organizational and HRM objectives (Stone 2002). It can reduce the human resources cost by helping management to anticipate and correct the shortages and surpluses of employees. An addition, HRP will provide a better basis for planning employee employment in order to make optimum use of workers' attitudes and to improve their job satisfaction

What is the importance of the concept of the product cycle for business planning and budgeting?

1572 words - 6 pages INTRODUCTIONThe product cycle concept states that all products have a life span. Since the desirability and sales of a product changes at different stages of a product's life, product concept and strategy always need constant revision. Product cycle can apply to both a category of a product or a brand and underlines most business planning models because of sales and profitability. It has a number of stages which are usually characterised by the

Every organization is composed of its own unique set of organizational objectives, structures, corporate cultures, business infrastructure, markets, operational strategies and processes.

1439 words - 6 pages Every organization is composed of its own unique set of organizational objectives, structures, corporate cultures, business infrastructure, markets, operational strategies and processes. While each of these factors is an equally viable part of an organization's overall corporate structure, the context of the organization's operations largely determine the nature of its corporate culture.But by far the single most influential component if any

A successful Enterprise Resource Planning (ERP) system implementation requires integration of technology with business strategy and assessing the impact of the system on all aspects of the business;

9755 words - 39 pages aspects, which are of lot of interest to many researchers. The lack of research on few aspects of successful Enterprise Resource Planning (ERP) system implementation therefore warrants that the system be comprehended and studied to weigh the influence of the system on various aspects of the business of an enterprise including distribution, manufacturing, financials, and HR, and evolve appropriate solutions that may come up as a result of

The different structures, designs, and types of a business.

3141 words - 13 pages ad hocbase matricialorientadas a servir clientes o a la empresa en si mismabuscan la solución a un problema planteadoInternet y la estructura de las organizacionesE- businessEl e-business consiste en el uso de internet para transformar los procesos de negocios tradicionales y hacerlos mas eficientes. Una de las tareas principales del e-business es integrar las distintas actividades, funciones o departamentos que antes trabajaban separadas

Importance of Strategic Planning and Management in the Business Environment Explain why a strategic plan would be important to the success of this business. Explain the four functions of management.

953 words - 4 pages The small business I would like to start would be a candy store. This paper will define strategic management, planning and explain why a strategic plan is important to the success of this business, and explain the four functions of management relative to creating and implementing a strategic plan.Strategic Management is the groundwork for a company's vision and allows a company to be ready to capitalize on opportunities. Strategic management is

Scenario planning cannot be used in international strategy development as it takes too long, costs too much and it would most likely lead to wrong strategic choices

1823 words - 7 pages International strategy involves expanding and managing business operations in multiple locations throughout a geographical region or the entire globe. By going global, an organisation intends to widen its customer base, achieve economies of scale, diversify macroeconomic risks, and acquire global business skills and competencies (Walsh 2005). Wether or not scenario planning should play a role in international strategy development is debatable

Organizing Paper

934 words - 4 pages The business world is in constant change, as companies expand and the customers' needs grow so does the need to efficient management teams. Managers and Human Resource managers work together as a team to carry out the four functions of management. The four functions of management include planning, organizing, leading and controlling (Husch, 2008).The most important function of management is the organizing function; all business operates using


870 words - 3 pages problems from happening, planning allows those problems to be handled in the best way possible.Organization is the functional area of business that arranges and structures work to accomplish organizational goals. (Robbins & Coulter, 2012, p. 216) A manager's organization skills are essential because managers must establish goals for all of the employees of their organization. Managers also organize the specific details of each goal and determine

Information Management

2558 words - 10 pages strategies that define, respectively, standards for the future success of a business or corporation and the deliberate pursuit of those standards through objective-seeking work (Abouzeid, K. M., and Weaver, C. N. 2003 , 29-35). Comprehensive planning (CP) for enterprise recruitment strategy may be conducted at either of two levels: comprehensive corporate planning (CCP) or comprehensive business planning (CBP) (Ackelsberg, R., and Harris, W. C. 2001

Similar Essays

Importance Of Strategic Planning And Management In The Business Environment

589 words - 2 pages The small business that I would like to start is a Pet Shop to sell and deliver small breed dogs, and to sell pet food, supplies and personalized gift baskets. The Pet shop will also provide its customers with small dog's spa, canine obedience training and routing vaccinations.Strategic Management and PlanningStrategic Management and Planning is a set of decisions and actions formulated to align people and resources together with the purpose of

Importance Of Strategic Planning And Management In The Business Environment

904 words - 4 pages Strategic Planning and Management PAGE \* MERGEFORMAT 1 Importance of Strategic Planning and Management in the Business EnvironmentnameBUS/475: Integrated Business TopicsDecember 2009instructorImportance of Strategic Planning and Management in the Business EnvironmentThe decision to embark on a new business venture can be daunting. The fear of lost time, money, and resources on a failed venture will deter many individuals from pursuing a dream

Legal Issues, Ethics And Corporate Social Responsibility On Business Planning

931 words - 4 pages Gary Dessler wrote that planning is, "the process of establishing objectives and courses of action prior to taking action" (Dessler, 2001). Business plans at (My company) are built by completing thorough business assessments, making operational plans and making the financial decisions to provide the monetary resources to put the plan in action. Planning is important at all levels of management and its importance is often overlooked causing

Business Planning Paper, Create A Business And Outline The Background, Operations Plan, Marketing Plan And Financial Plan

5139 words - 21 pages Untitled FINDERZKEEPERZ INC. GM 600 Section D Business Planning Seminar Prepared By Team C Kerry Capeheart Merideth Hadala James Holliday Tywane Jones TABLE OF CONTENTS Executive Summary 4 The Company 4 The Company's Mission 4 Products or Services 4 Target Market 4 Marketing Strategy 4 The Competition 4