Business Organisations Type of business units Private Enterprise Public Sole Trader Bob the builder Partnerships Was Marks & Spencer Plc’s Tesco Limited Smith & Son Ltd Franchise Avon Local Government Police, NHS Education Central Defence etc

Levels 6+ Levels 4-5 Level 3-4 I can justify the type of organization from a range of businesses Levels 4-5 I can explain two differences between two different business Organisations. Level 3-4 I can identify three examples of sole Traders and Partnership Businesses within Plymouth

Sole Trader This is the one-person business. He or she is the sole owner of the business. The owner keeps all the profit but is responsible for all debts incurred. Another disadvantage is the owner may not be an expert in all areas of business. Finance for future development may also be a problem. Unlimited Liability

Partnerships A partnership has between 2 and 20 owners. This means people can specialise in different areas business. Less stressful than sole traders More sources of finance is possible. Good examples of partnerships would be doctors, construction firms and solicitors. One partner is responsible for all the debts and a deed of partnership must be agreed upon Expansion of a business may be easier to achieve due to more sources of finance.

Private Limited Company (Ltd) At least two people may set up a limited company but there is no maximum number of owners. A block of shares is known as a 'stock'. The issuing of shares is an ideal way to raise large amounts of finance not available to a sole trader or partnership. The shares are issued to agreed members and not available for sale to the general public. Anyone buying a share only risks the amount of money they put into the company via the shares. They receive a share of any profit, known as a 'dividend'. There is thus a principle here of limited liability.

Public Company plc There must be at least two owners but there is no maximum limit. Examples of such companies are Barclays Bank PLC, Marks and Spencer PLC and British Telecommunications PLC (PLC means public limited company). The ownership of shares is open to all members of the public via the Stock Exchange. If a company wishes to 'go public', i.e. offer shares to the general public

Other Types of Businesses Franchise This is when a business buys a licence or franchise to operate as a well known firm. This is often the case in the food trade where businesses buy franchises to operate as Wimpy Bars, Kentucky Fried Chicken etc. Charties A charitable organization is a type of non profit organisation (NPO). It differs from other types of NPOs in that it centers on non-profit and philanthropic goals as well as social well-being (e.g. charitable, educational, religious, or other activities serving the public interest or common good). They have reduced taxation implications, VAT is NOT included. Co-operatives Co-operatives have become increasingly common a form of business organisation in the UK. They have been encouraged as a way of helping to reduce the problem of unemployment. Co- operatives have the following advantages: 1) The workers are all the owners in the firm and share the profits. 2) Co-operatives mat be registered as limited companies 3) Help and advice can be given in the form of a Co-operative Development Agency (CDA). 4) There is no limit to the number of members in a co-operative.

Todays’ task Update the three slides on your ‘business portfolio’ and identify the types of organisations, that your choice of businesses are. Justify your reasons to the type of organisation.