What is the link Learning objectives PASS To

What is the link?

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

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