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