barclays case study – 4 questions

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barclays case study – 4 questions

Questions

  • Set out the differences between sole traders, partnerships and limited companies. What are the benefits of each type of ownership? What are the drawbacks?
  • A sole trader, or also known as a sole proprietorship, you are the only owner of the business. The business is under your name only, and therefore all legal responsibilities will be yours. The owner will have complete control over the business and will take the full profits or loss made by the company, after all costs are made. The sole trader may hire employees, just as any other type of business structure. The only major disadvantage of being a sole trader, is that if the business is unsuccessful, personal assets may be at risk, if the company has major debts to pay. The major advantages of sole proprietorship are that the start-up costs are much lower and there are less legal regulations to consider.

    A partnership is a business structure with two or more, up to 20, creating a business together. The ownership, does not have to be equal, however the responsibilities and risks will be shared equally. This is also referred to as a strategic alliance and this will require the business to register a business name. after the business starts up and the business becomes either successful or unsuccessful, partnerships can sometimes have conflicts, if successful, each partner will want more and more ownership of the business and if unsuccessful, each partner will want less ownership. This can cause major conflicts and this is because some partnership agreements are verbal agreements. Therefore it is important to confirm the ownerships and have a legal adviser look at the partnership.

    A limited company is the most common business structure. This is a small to medium sized business with a more complex business structure. The company will have its own assets and liabilities, and therefore its own legal entity from you. There will be a more level of human resources, with the simplest being, owners, managers, supervisors and employees. The advantage of this is that, the company itself is liable for any responsibilities and risks, not the shareholders or you. Only if the stakeholders have deliberately breached an rule of conduct, the stakeholders will become liable. Drawbacks are that the start-up costs are very high.

  • What are the main budget factors that a new business should take into consideration? What factors would Tim O’Neill, the founder of T&T vision, have to consider?
  • Budgets are used as a plan to control and monitor the finances of the business or event. They are used to limit the amount of expenses that a company will purchase. The second use for the Budget is to measure that financial performance of the business or event. The budget creator will create the budget prior to the period which the budget will be implemented. Each factor will be allocated a certain expense such as COGS and expenses.

    The information needed to develop a budget include:

  • Purpose of budget
  • Length of budget
  • List expenses
  • Past revenue
  • Projected sales
  • Past expenses
  • Projected Expenses
  • ......

    barclays case study – 4 questions
    Last updated: Feb 2024

    Page 1

  • Projected Expenses
  • Any market trends
  • The factors that Tim O’Neill needed to consider when developing a budget include:

    External

  • Market share – the market share is the amount of customers compared to other competitors.
  • Competitors – number of competitors.
  • Complementary industries – industries that base their products on our products. Such as iPhone case for iPhone.
  • Technology – technological advancements and impact of technology.
  • Government – government policies and procedures.
  • Economy – inflation rates, exchange rates
  • People and Culture – the way people or cultures react to the product.
  • Demographics – which people would be targeted for the marketing
  • Internal

  • Level of training – how much training have the staff received.
  • Quality of suppliers – is the supplier providing the best products or are there better suppliers.
  • Level of service standards – what service standards are required and are they being effectively complied with.
  • Management efficiency – is the management team effective and making the right decisions for the company.
  • What are the key sources of finance for business start-ups? Suggest an idea that could turn into a business proposition. How would it be possible to finance the new business?
  • Overdraft – this is a flexibility with the bank, to allow the business to spend more funds than available. Therefore the business is able to have negative funds in the bank account and will pay the overdraft when sufficient funds are available.

    Business credit Card – this is a borrow flexibility where the business uses the credit card to pay for certain expenses. If the business is above sufficient fund, there is no internet needed to pay. If the businesses have negative funds, the business will have to pay a percentage of the negative funds each month. This is similar to a loan, expect the interest is a lot higher.

    Bank Loan a bank loan is a simple loan from the bank that will have to be paid back with monthly repayments. The total repayment will be significantly higher than what was first loaned.

    My business idea is a café that also sell clothes, stationary, books similar to a library, and use free internet. It is a place for many people to come and stay for a long time. This would have to be financed with a large loan from the bank, and a business credit card for emergencies.

  • Based on the idea produced in answer to question 3, what are the main…
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    barclays case study – 4 questions
    Last updated: Feb 2024

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