Why Businesses Change Their Ownership Essay

Change in ownership 1. Why would a telephone circuit dislodge their ownership to parent? A trade whitethorn lurch their ownership from a sole trader to a league to ontogeny the amount of neat input by the partners to perchance relocate to big bring outs to accommodate for a large workforce that is necessary with any alliance. Also, a bigger premise would allow much room for stock or machinery and so forth For example, regarding my newsagents, they could change from a sole trader to a partnership to expand their business as they whitethorn fate the special workload to possibly lead a new caravan driver to pick up the deliveries to proceed costs. Possibly they may purchase an additional van to place even more deliveries so that the customers can always buy their products conveniently. Having additional shareholders would extend capital because selling more shares ticker that people would be buying a share in your business and is a long term investment , the increased capital would symbolize that your business has the unornamented money to expand and grow the business. By ripening the business the stakeholders (which can be customers or employees or anyone who is stirred by the business) will be bust off as there is a better serve up being provided by that business on a latent big scale.

Expanding the business would mean there is a larger workload. Having a larger workload would require additional employees, having extra staff means that the business would be more expeditious and run smoother, nub that the business would be dealing with bigger busine ss and grant more profit. However, meeting! two active companies may mean fewer employees are needed as both businesses would have people doing the same job, so when merging the businesses they would not need two finance departments for example. The workload for the pigeonhole of the company would increase by a lot, he or she would have to give way very important decisions that could either make or disclose a business, these could be decisions similar where...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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