Merrythought is a business that makes teddy bears, located in Ironbridge, Shropshire, in the United Kingdom. The business was founded years ago by Gordon Holmes. It is a private limited company, still owned by the Holmes family and is currently run by Gordon Holmes's great-granddaughter Sarah Holmes.

The business has approximately 25 employees and does all its manufacturing in England. It makes a large number of different styles of teddy bears, ranging from "traditional British bears, to special occasion bears and various " novelty' bears.

A. Identify and define the type of business the Holmes family is conducting. Justify your answer

B. List its advantages and disadvantages.

Products - Teddy bears

Founder - Gordon holmes

Business type - Private limited company

Ownership - Gordon's holmes family

Administration Gordon Holes granddaughter

Staff strength - 25

Looking at the detailed information about the company as provided above, it is justified that it is a small family owned private limited company.

A small private limited company is a small sized company which ownership and management is largely by family members, Moreover, the staff strength is always limited due to its size and shares can not be listed for pubic trading.

Advantages

Easier to set up

Easier administration

Business continuity if founder dies

Disadvantages

Limited resources

Shares can not be transferred

Lack of public confidence