Examples of services include providing desk top publishing, printing logos on clothes, running a school shop, offering a cleaning or valeting service, supplying food or other items for special occasions.

 Service  Liquidity/ solvency  Assets  Liabilities  Revenues  Expenses  Current liabilities  Long term liabilities  Current assets  Fixed assets  Budgeting  Fixed costs  Variable costs

1Briefly describe what business idea you have come up with. 2 Describe in general what possible forms of business ownership you are thinking about. 3 Describe and explain, in detail, the formation and advantages and disadvantages of your chosen form of ownership. (Compare if to the others if need be). 4Describe aims and objectives in general. 5 Create a mission statement for your business and supporting business objectives. (Try and make objectives SMART) 6Explain why it is important to have targets.

 What service are you going to choose?  Where will that service be located (has to be somewhere on the island - local)?  Very briefly who will your target market be?  Briefly why have you chosen this (you will do lots of analysis, so give your opinion from a local person’s point of view)

Business Ownership can be categorised by the following:  Businesses with unlimited liability  Businesses with limited liability  Other forms of business organisation

 Unlimited liability means that the finances of the business are treated as inseparable from the finances of the business owner  If the business owes £1,000,000, the owner owes £1,000,000 and can be forced by court to pay for it themselves. This means selling their own private houses and cars etc.  There are two types: Sole Trader, Partnership

 An individual who owns and operates their own business  There may be employees but there is only one owner who benefits financially from the business  Despite the financial dangers involved, sole traders are the most common form of ownership adopted by UK businesses  Builders, plumbers and many independent shopkeepers will be sole traders  Disadvantages include little finance available, long hours of work (including difficulty of taking a holiday), difficulties of running a business with ill health

 Similar to sole trader but with more owners. Between 2 and about 52  There are advantages and disadvantages of a partnership owned business. Draw up a table of list what you think they are Advantages of partnership Disadvantages of partnership

 Limited liability means that the legal duty to pay debts run up by the business stay with the business.  The debt is not the owners personally  If the company owes £1,000,000 that the company cannot pay. The courts can order the business to sell all of its assets and if that is not enough the business will then be closed.  The owner will have no personal liability for those debts

 Limited liability companies have to go through a legal process to become a company – process of ‘incorporation’  2 types of limited company: Private limited and Public limited AdvantagesDisadvantages Confidence to expand due to limited liability Must publicise financial information Can borrow more moneyMany more costs associated with the rules of being a limited company e.g. Annual reports

 Still relatively small companies  Owned by shareholders but the shares are not listed on the stock market  Shares are sold with the permission of the directors  ‘Ltd’ appears after the company’s name

 When a private limited company expands past a share capital of £50,000 it can convert to a ‘Plc’  This means the company will be ‘floated’ on the stock market, which allows any member of the general public to buy shares  This gives the company access to much more money to then further invest in the company

 Co-operatives – These can be owned by the staff of the business e.g. John Lewis/ Waitrose  Not-for-profit Organisation – These include charities

Type of business NumberExSource of Finance Liability for Debts Profit Distribu tion Authorit y and control Sole Trader 1PlumberSelf Bank UnlimitedTo Owner Partners hip 2-20SolicitorPartner Bank UnlimitedPartners Ltd2+Local Brewery Above + Shares LimitedShareho lders Plc2+Sainsburi es Above Stock Ex LimitedShareho lders Board of directors

Briefly describe what your company does? What type of ownership is it? What are the advantages and disadvantages of your choice? Why did you choose this form and not others? Make sure you have discussed: sources of finance, management, unlimited liability

What are aims? Why are aims important? What is your business’ aim? What is a mission statement? Why do you have a mission statement? What is your mission statement? What are objectives? Why do you have objectives? Why have you chosen these objectives? Who are stakeholders?