An Analysis of Richer Sounds PLC Essay -- Business Management TQM Essa

An Analysis of Richer Sounds PLC 1.0 A Report on How Richer Sounds Functions 4.1 A Classification of the business according to its ownership, and an explanation of the benefits and constraints of this type of ownership Richer Sounds is part of the Private Sector, which consists of businesses who seek to make a profit. Julian Richer is the sole owner of Richer Sounds, which means he has full control over the business, but the Directors run it. Richer Sounds is a regional unlisted Public Limited Company, which means it is not listed on the Stock Exchange. Julian Richer is owner of all the shares of Richer Sounds, but the official name of the company is still Richer Sounds PLC, even though the shares are not for sale to the public. Julian Richer also gains the advantage of limited liability, which means he is not personally liable for any of the company’s debts. The most he can lose is the money he has invested in the company, so he has not put any of his personal possessions at risk. 4.1.1 Richer Sounds’ Legal Requirements Richer Sounds also have legal requirements that it has to abide by; such as they must have its name and address, ect registered at the Companies House where they will also have to send annual returns and financial statements. This is one of the disadvantages of being a Limited Company the fact they have lots of paperwork due to annual statements. The advantages and disadvantages of Richer Sounds are shown further on in the report. Also the financial affairs of Richer Sounds have to be published because the company’s stakeholders need to see how the business is performing. 4.1.2 Memorandum and Articles of Association The documentation that Richer Sounds is likely to encou... ...follows: www.richersounds.co.uk www.msn.com (search engine); searched words such as Richer Sounds PLC, Richer Sounds’ products and prices, communication. Textbooks I used are as follows: Business Studies for you, authors David Needham and Robert Dransfield Business Studies, authors Ian Marcouse, Andrew Gillespie, Barry Martin, Malcolm Surridge, Nancy Wall. Line relationship . Each person has a superior and staff know whom they should report and for which staff or work area they are responsible for. Informal relationship. Staff have frequent contact through their work, but have no formal relationship. Staff relationship. This is where no formal authority exists, but advice is sought. Lateral relationship where the staff in different departments with the same level of responsibility need to co-operate or co-ordinate their activities.