1. Business Ownership in the UK

2. Private Sector - aims to make a profit and is owned
by private individuals from the general public
Public Sector - consists of organisations run or financed
by central and local government.

3. Business size is usually measured by the number of employees, sales figures or value of their assets:
e.g.
employees
201 +
employees 30
employees
small
medium
large

4. Sole Trader Features: Single owner Unincorporated Unlimited liability
Advantages
Disadvantages
Own boss
Unlimited liability
Gain all profits
Little capital to set up
Make all decisions
Perhaps long hours, few holidays, etc
Easy to set up

5. Partnership Features: Between 1 & 20 partners Unincorporated
Unlimited liability
Partnership
Advantages
Disadvantages
More shared capital to start up
Unlimited liability
Share running of the business
Share all profits
Easy to set up
Arguments can occur

6. Limited Companies Memorandum of Association Articles of Association
Companies House
Certificate of Corporation

7. Two types of limited company:
Public Limited Company (PLC)
Can sell shares to the general public
Private Limited Company (LTD)
Can only sell private shares
Advantages:
Limited liability
Separate legal entity to owners
Can sell shares publicly
Disadvantages:
Must disclose annual financial information
Must hold an AGM
Advantages:
Limited liability
Separate legal entity to owners
Disadvantages:
Must disclose annual financial information
Must hold an AGM
Cannot sell shares publicly

8. Franchise “an agreement between a franchiser and a franchisee”
Franchiser: a large company
Franchisee: private individual
Advantages
Disadvantages
Well known product/service
Cost of buying the contract can be very expensive
Franchiser will advertise and promote product
Percentage of the profits are paid to the franchiser
Banks will be more willing to lend money for start up
Franchise agreement can be withdrawn
Business failure is low
Owner becomes a “branch manager”

9. “people join together to organise, make decisions and share profits”
Co operatives
“people join together to organise, make decisions and share profits”
All members have an equal share and an equal say.
Profits are shared equally
Types of co-operative:
Workers Co-operative
Retail Co-operatives

10. i.e. Department for Defence
Public Sector
Local Government
i.e. Local council
Public Corporations
i.e BBC
Central Government
i.e. Department for Defence