http://accounting-simplified.com/audit/risk-assessment/audit-risk-business-risk.html
http://hwchamber.co.uk/support/advice/starting-a-business/legal-status-of-your-business
For example you can have sole traders and these are the people who may own a business to their self and no one else owns any part of the company so the money that they earn goes straight to them and no one else takes any of the money.
An example of a sole trader could be someone such as a photographer and the reason they can a sole trader is because they can do projects and sell them under their name so no one else gets any of the profit except the creator
The kind of advantages and disadvantages that you may get as a sole trader is aspects such as you have control over your own business because you are the owner of it so every that happens with that company is your responsibility and this can be a good thing or a bad thing and the reason this is, is because the company depends on your skill set and if it does not fit the kind of company that you own then you may not see as much successful so you need to have a skill set that fits the company that you own.
For example if you own a company that makes Music videos for people who may want to hire you, you will not have to use business audits and business audits are external companies who you may hire and they will look at your income, how much you earn and how much you are losing in total and so on but because you are a sole trader you do not really need to use this because you can do it yourself because all the profit of the company is going straight you and no one else so you should know how much is going in and out of the companies bank account and they may also guide you on what to do if they discover bad results.
As an example, the situation with Energy PLC which is a gas company. There was damages to one of the pipelines that they owned and in this situation they had to bring in the CFO (Chief Financial Manager) because they needed a solution because it lowered the quality of gas to that community and the solution that the CFO came up with was that they did another drill exploratory well in order to improve the quality and quantity of gas in that community and the risk which was took was if the drilling would be successful for them to gain profit to increase the shares from these exploratory wells. (Reference)
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