1. What is the link?

2. 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

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

4. 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

5. 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

6. 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

7. 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?

8. 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

9. 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)