Types of business organisation
Rino Rinaldi is an Italian waiter working in a large restaurant in London. It has always been his ambition to run his own restaurant and he feels that a restaurant concentrating on relatively cheap meals but with emphasis upon good quality service will do well. As a result of a lucky pools win of £160 000 Rino is able to achieve his ambition and he buys a restaurant in Maidstone which he names Italiano, specialising in steak and wine. The business does well and Rino decides to expand his business to other towns in Kent but unfortunately he lacks the capital. He decides on a partnership and his wife Wendy uses £60 000 of her savings, and two ex-colleagues, Stuart Conway and John Drew, decide to provide £120 000. This together with money from his present business allows the partnership to buy another two restaurants, one in Ashford and the other in Sittingbourne The emphasis upon good service, Italian wine and well-chosen steaks is obviously very effective and the three restaurants do very well indeed. Rino and his partners decide to form a company and Rino, John, Stuart and Wendy each are given shares in the company.
KeywordsLegal Status Private Company Business Organisation Legal Person Railway Carriage
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