Tuesday, September 13, 2011

Parcel

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Business Proposal for


Jim Smith Parcel Couriers


Prepared by Tim Parrott Business Consultant


Purpose Jim Smith Parcel Couriers have asked


Custom Essays on Parcel

essay writing service



Parrott Business Consultants to advise them on the most appropriate Business Structure for this proposed courier service involving rapid parcel delivery using small motorcycles within the inner city area.


The following Business Structures could be considered


Partnership A legal business structure that is owned and operated by between and 0 people with the aim of making a profit.


Private company A Proprietary (private) company usually has between and 50 private shareholders.


Public company The shares for public companies are listed on the Stock Exchange and the general public may buy and sell shares in them.


Advantages/Disadvantages


Partnership


Advantages Disadvantages


1.Low start-up costs 1.Personal unlimited


.Less costly to operate than liability


a company .Liabale for all debts,


.Share responsibility and workload including partners


4.Pool funds and talent debts, even before


5.No taxes on business profits, the partnership has


only on personal income begun


.Possibility of disputes


4.Difficulty in finding a suitable partner


Private company


Advantages Disadvantages


1.Shareholders have limited 1.Need better admini-


liability protection stration system


.More shareholders bring more .If you havent orga-


capital to the company nized well “sharehol


.More capital allows for expansion ders” could come


of company into conflict


4.Expansion means, more ability


to make money


Public company


Advantages Disadvantages


1.If you puy your company on 1.Greater responsib-


the Share Market very large ility on the directors


increase of capital .Increase in govern-


.Allows for expansion nationally ment interferance


or internationally .Possibility of being


.Possibility of very large profit “bought out” by


another company if


they buy a majority


of shares


4.Very complex and


expensive to orga-


nize


Recomendation


Based on the above analysis, Parrott Business Consultants would recomened a Partnership to start with, for the following reasons


Low start up costs as there is money from more owners


Share the responsibility and workload with other owners


Save capital in all costs and expenses


You dont get taxed on your business profits only on personal income


Talent and experience usually comes with partners


We also recomend that if the business is successful in the first years, consider becoming a Private company in order to expand business and profits


Your sincerely


Tim Parrott, Parrott Business Consultants


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