For music tuition visit:

Home Tuition Scotland can provide a Standard grade Business management tutor, Intermediate 1 Business management tutor, Intermediate 2 Business management tutor, National 4 Business management tutor, National 5 Business management tutor, Higher Business management tutor or Advanced Higher Business management tutor to deliver exam success.

Please book today

Our qualified Business management tutors are experts in one-to-one Business management tuition and will cover topics including:

Private Limited Companies
Private limited companies are companies whose shares are owned privately – not available to the public on the Stock Market. There is a minimum of one shareholder (owner) in a private limited company, and a director or most commonly, a board of directors runs the business. A shareholder can be a director, and there must be at least one director and one company secretary (who keeps all the company records). The company must produce a Memorandum of Association and Articles of Association that state the details of the company, responsibilities of its directors and the rights of its shareholders. Private limited companies tend to be family businesses, although this is not always the case.
Examples of private limited companies are Arnold Clark and Baxters (soup).
Advantages
􀁹 Shareholders have limited liability – they only lose their invested capital if the business fails.
􀁹 More finance can be raised from shareholders and other sources.
􀁹 Control of the business is not lost to outsiders who have no knowledge of it (like public limited companies).
Disadvantages
􀁹 Profits are shared among more people.
􀁹 A legal process has to be adhered to when setting the company up.
􀁹 Shares cannot be sold to outsiders – it might be more difficult to raise finance.
􀁹 You have to abide by the Companies Act requirements.
􀁹 Annual accounts have to be published for the business, although these do not have to be made available to the general public.

Public Limited Companies
A public limited company, or plc, is a company whose shares are available to be
purchased on the Stock Market. You need to have at least two shareholders and £50,000 of share capital to start one up. The same legal documents as a private limited company have to be drawn up. A board of directors – appointed by shareholders – controls the company. Public limited companies can also be called corporations.
Examples of public limited companies include the mobile phone giants Vodafone and TMobile.
Advantages
􀁹 You can raise immense amounts of finance.
􀁹 Plcs are usually market leaders.
􀁹 You can borrow money from lenders easily due to the size of the business.
Disadvantages
􀁹 There are a lot of set-up costs involved – prospectuses and underwriting (an insurance against some shares remaining unsold, meaning fees have to be paid to the underwriter who must buy these unsold shares) need to be set up before gaining the interest of investors.
􀁹 The Companies Act must be adhered to.
􀁹 The business has no control over who buys the shares on the Stock Exchange in the
long term, although they can choose whom they wish to sell to when trading begins.
􀁹 You must publish annual accounts and make them available to the general public upon request.
Sources of Finance
􀁹 Retained profits.
􀁹 Selling shares to the public.
􀁹 Bank loans.
􀁹 Overdrafts.
􀁹 Debentures.
􀁹 Government grants.
􀁹 Trade credit.
􀁹 Debt factoring.
Objectives
􀁹 Profit maximisation.
􀁹 Growth.
􀁹 Maximise sales.
􀁹 To be dominant in their market.
􀁹 Image.
Plcs may be global companies, or multinationals (having manufacturing plants in more than one country. In doing so, they can:
􀁹 Take advantage of economies of scale – buying more products at a lower unit cost.
􀁹 Avoid legislation in the home country that might have a negative effect on the business’s profitability.
􀁹 Avoid restrictions on quotas (number of imports brought into the country).
􀁹 Receive tax benefits and government grants from more than one country.
Franchises
A franchise is an agreement that allows an individual or group to use another business’s name and sell their products and services. The individual is called the franchisee, and the business selling their name is called the franchiser. A small percentage or fixed sum is given to the franchiser in return for using their name and products/services.
Examples of franchises are the BSM (British School of Motoring) and McDonald’s.
Advantages (to the Franchiser)
􀁹 You can increase your market share without a great deal of investment.
􀁹 Revenue is reliable (you get a set payment or a percentage of profits each year).
􀁹 Risks are shared between the franchiser and franchisee.
Advantages (to the Franchisee)
􀁹 The franchiser will undertake its own marketing strategy; therefore you will not have to carry out much advertising on your own.
􀁹 The franchiser may train you in the operation of machinery or the routine that you
must follow.
􀁹 The risk of failing will be reduced because the business already has a good reputation.
Disadvantages (to the Franchisee)
􀁹 You have to pay the franchiser a percentage of profits or a royalty payment.
􀁹 The franchiser might not renew the franchise after a certain period of time, leaving you without the backing and permission to continue.
􀁹 The products you sell, the price you sell them at, and the layout of the shop may be
dictated by the franchiser, meaning you will be less able to make your own decisions.
If you require Business management lessons Edinburgh, Business management lessons Glasgow, Business management lessons Aberdeen, or Business management lessons Dundee, at a price you can afford, please contact us today.

Edinburgh Business management lessons, Glasgow Business management lessons, Aberdeen Business management lessons, Aberdeen Business management lessons, Home Tuition Scotland can help your child achieve Business management exam success at a price you an afford.

Please book today.