Starter Who own these companies? How does ownership work? Sole Trader, Partnership, Limited Company, Co-operative
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
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. 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 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 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