Summary Notes on Unit 1 - Shareholders and also different types of companies
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Course
Unit 1 - Nature and purpose of business
Institution
AQA
These are notes on what shareholders are and also talks about different types of companies and the type of mission or objective they would have, decision making and also the kind of performance.
A valuation of a company. It is the total amount of shares issued multiplied by the share price.
Shareholders are:
Investors who are part owners of a company
Their liability is limited to the amount invested or promised so they only lose what they
invest
They receive dividends in return for their investment
Invited to annual general meetings where they have a proportional voting right
Why invest:
Short term gains ie: receipt of dividends
Long term gains ie: increase in share price
Influences on share price:
World events : Covid
War
Performance : Profit warnings cause share prices to go down
Cultural shifts
Type of company Mission/ objectives Decision making Performance
Sole trader May be willing to A sole trader doesn’t Measured by their
sacrifice profit for need to consult with own standards.
work – life balance anyone. Decisions are Performance will be
quick and definitive restricted by limited
resources
Ltd Depends on nature/ Consults with share Responsible to
size of shareholders holders shareholders
Growth?
Work life balance
Plc May have pressure to May have to call a Responsible to
maximise meeting with shareholders
shareholders returns shareholders so
decisions will take
longer
NFP Focused on achieving Consult members/
social goals over users of service before
financial ones any big changes
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