Why Businesses Change Their Ownership Essay

Change in ownership

1. Why would a demarcation dislodge their ownership to grow?

A trade whitethorn lurch their ownership from a sole trader to a league to ontogeny the amount of capital input by the partners to perchance relocate to big bring outs to accommodate for a bigger workforce that is necessary with any alliance. Also, a larger 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 may fate the special workload to possibly lead a new caravan driver to pick up the deliveries to save costs. Possibly they may buy an additional van to get even more deliveries so that the customers can always buy their products conveniently.

Having additional shareholders would extend capital because selling more shares meat 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 extra 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 better off as there is a better service being provided by that business on a potential larger 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 efficient and run smoother, nub that the business would be dealing with bigger business and grant more profit. However, merging two existing 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 boss 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 like where...If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper