Compare and contrast two different types of business structure (taken from the range of UK business vehicles available, e.g. public company, private company, partnership, sole trader etc) for a new start up but potentially fast growing business
Your account should consider the range of economic, international, technological, commercial and management issues which will influence the choice of business structure, especially if the activity is trans-national. You should illustrate your answers with reference to a specific (real or fictional) business, which should be described in an appendix. The body of your report should not exceed 6,000 words and the appendix not more than 1,000 words it should include:
Explanation of the potential impact of the external economic environment – possible changes in interest, inflation, world trade etc
Understand the relative merits of different business vehicles – and the various corporate and personal taxation issues that may apply
Consider alternative management structures and how operations might be organised
The need for adequate investment and working capital finance, the various financing options available – both now and in the future for the business – and the key elements of management accounting
How to tackle the business planning process depending on the nature of the business structure and the likely finance requirements
How to formulate a marketing and sales strategy – particularly with regard to the markets and services and the resources required to achieve the desired level of revenue and profit
Labour and human resources issues – With particular emphasis on the ability to retain and incentivise key members of the team who are critical to the future success of the business
How to plan the relevant knowledge management and information management systems
The possible impact of future trends and the digital revolution on future trading Legal, regulatory and compliance issues