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Starter Who own these companies? How does ownership work? Sole Trader, Partnership, Limited...
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Starter Who own these companies? How does ownership work? Sole Trader, Partnership, Limited Company, Co-operat 5mins
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Transcript of Starter Who own these companies? How does ownership work? Sole Trader, Partnership, Limited...
Starter
Who own these companies? How does ownership work?
Sole Trader, Partnership, Limited Company, Co-operative
5mins
Learning Objectives by the end of this lesson students….
Ownership
Independent
Multiple retailers are businesses with more than ten branches
Franchise
Which company matches
the correct ownership?
Homework
Complete your word document poster on Business Ownership – you will be starting this in today’s lesson
Franchise
Franchised retailers are granted selling rights in a geographical area. The franchisee pays a fee based on sales or an annual rent to the franchisor to operate their business model.
Legal Status Key Terms
Unlimited Liability Business owners are personally responsible for all the debts
of the firm and their personal assets can be seized to pay company debts
Limited Company A business that is owned by shareholders, who have limited
liability for the business debts
Shareholders Individuals or organisations that own or hold a share in a
business
Limited Liability Shareholders only lose the value of their shares if the
business fails
The
ory
Not
es
Legal Status: Sole Trader, Partnership, Limited Company, Co-operative
Watch the video
Write down what the advantages and disadvantages each of ownership
http://www.youtube.com/watch?v=_ZfX8XIFCgc
Sole Trader
SOLE TRADER IS A BUSINESS OWNED AND CONTROLLED BY ONE PERSON.
THE OWNER IS PERSONALLY LIABLE FOR THE BUSINESSES DEBTS AND MAY HAVE TO PAY THEM PERSONALLY. THIS IS CALLED UNLIMITED LIABILITY.
CAN YOU THINK OF ANY EXAMPLES OF A SOLE TRADER BUSINESS? CREATE A MIND MAP IN YOUR BOOK.
5mins
Sole Trader
Theory
Notes
Partnership
Is a business owned by two or more people.
A contract called a ‘deed of partnership’ is drawn up.
Partnerships are normally set up in specialist areas where more than one person has the knowledge and skills to run the business.
Can you think of any examples of a partnership business? Create a mind map in your book
5mins
Partnership
The
ory
Not
es
Limited Company
A limited company is owned by shareholders. It can be ‘private’ (Ltd) or ‘public’ PLC.
These businesses benefit from limited liability
Can you think of any examples of Limited Companies? Create a mind map in your book
5mins
Limited Company
Theory
Notes
Co-operative
Co-operatives are owned and operated by members, who also use the services offered by the business
Members typically include management and employees of the business as well as customers
Members elect directors, vote at meetings and share in the profits
The
ory
Not
es
Advantages and Disadvantages
For each of the types of businesses, there are many advantages and disadvantages that help business owners decide which type of ownership they would like to set up
This is stuck in the back of your books – have a look!
Task- P1
Describe the sub-sector, channels, format, size, ownership and location of two retail businesses operating in different sub-sectors. (P1)
This task must be finished by the end of this lesson
