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Learning objectives PASS To describe the type of business purpose and ownership of two contrasting businesses Merit To analyse the benefits of different types of business ownership Distinction To evaluate the appropriateness of business ownership types in relation to their purposes

Types of Private Business Ownership Sole trader Partnership Private limited company Public limited company Franchisee

Types of ownership - features Partnerships Sole traders Private Limited Companies Public Limited Companies Print one for each student Research to find out as many features of these types of ownership

Sort the following terms into the appropriate type of ownership Unlimited Liabilities Sells shares to family and friends Must register company with Companies House Owner has total control over business decisions Unlimited Liabilities Shares sold on stock exchange, sold to public Must register company with Companies House Two to 20 partners Owner keeps all the profits At least 2 shareholders, 2 directors, qualified Company secretary Large organisation, high status Easy to set up Profits shared between partners Easy to set up Needs at least £50,000 of finance before able to sell shares Financial records must be declared at the end of ever year Yearly dividends paid to shareholders Expertise available through partners At least 1 shareholder, 1 director, 1 secretary Small to medium sized organisation Annual report must be published to shareholders Annual report must be published to shareholders Smallest form of ownership May be divisions between shareholders and managers Shares sold easily to public Limited Liabilities Most common type of business in the UK Lots of rules and regulations to comply with Limited Liabilities Easy to raise finance as has a good credit rating and high status Financial records must be declared at the end of ever year One owner

Sole traders Partnerships Private Limited Companies (LTD) Public Limited Companies (PLC) At least 1 shareholder, 1 director, 1 secretary At least 2 shareholders, 2 directors, qualified Company secretary Easy to raise finance as has a good credit rating and high status One owner Two to 20 partners Smallest form of ownership Profits shared between partners Small to medium sized organisation Large organisation, high status Needs at least £50,000 of finance before able to sell shares Most common type of business in the UK Expertise available through partners Sells shares to family and friends Shares sold on stock exchange, sold to public Shares sold easily to public Owner has total control over business decisions Must register company with Companies House Unlimited Liabilities Must register company with Companies House Lots of rules and regulations to comply with Easy to set up May be divisions between shareholders and managers Owner keeps all the profits Financial records must be declared at the end of ever year Financial records must be declared at the end of ever year Yearly dividends paid to shareholders Unlimited Liabilities Annual report must be published to shareholders Annual report must be published to shareholders Easy to set up Limited Liabilities Limited Liabilities

Research – The ownership of Tesco Research the type of ownership Tesco has: Write a paragraph, answering: What type of ownership does Tesco have? What is the definition of this type of ownership? How does this affect Tesco?

Unlimited liability & Incorporated Describe the term Example Unlimited Liability Unlimited liability  owner is personally responsible for all debts of business (he might have to sell his personal possessions to pay the debts). Sole Traders & Partnerships Limited Liability ?????? ????? Incorporated businesses Incorporated  business and owner legally separate PLCs Unincorporated businesses Define the terms and give an example

Research – Liability & Incorporated Research the type of liability Tesco and Quest have: Write a paragraph, answering: Define limited and unlimited liability What type of liability does Quest and Tesco have? What is the impact of this on each business? (Answer the same questions but about incorporated)