1. Private and Public Limited Companies

2. Objectives Pupils will know the features of Private
Limited Companies (C)
Pupils will know the features of Public
Pupils will know why the number of
limited companies have changed (A)

3. Legal Structures of a business
Watch the following video about the different type of business structures. Think about which type of structure you would start a business of your own as.

4. How do we know a limited company?
Owned by
shareholders
Limited liability
Public limited
(Plc)
Must let customers
know
Private limited
(Ltd)
incorporated

5. Board of directors All limited companies
Directors elected by shareholders
Elected at AGM (Annual General Meeting)
Make important decisions and run company
Chair of board – responsible for way board run
Managing director – Overall running of company

6. Private Limited Company (Ltd)
An incorporated business structure owned by shareholders. Shares may be sold, but to family and friends of the owner only.
The shareholders (owners) have limited liability.

7. Advantages and disadvantages Ltd
Task 2.5.1

8. Public Limited Company (plc)
An incorporated business structure owned by shareholders. Shares are traded on the stock exchange to members of the public.
The shareholders have limited liability.

9. Public limited companies
Traded on stock
exchange
Dividends to
shareholders
Start-up shares
£50,000
Used to raise
money

10. Shareholders
Minority shareholders – private individuals (small number shares)
Major shareholders – banks / investment companies (large number shares)
Shares up/down
Economy doing
well
Future looks
good
Takeover
bid
Value rising

11. Advantages and disadvantages plc
Task 2.5.2

12. Registered in Great Britain
Type of business organisation
Number of companies
2000
2008
Public Limited
15,181
11,905
Private Limited
1,619,500
2,700,851
Why increased?
Merger or takeover
New companies
Change country
Go out of business
Changing business
type

13. Video
Watch the video about the established businesses and the journey they go through to fund themselves and operate successfully.

14. Review Task Complete the features worksheet. Extension:
A sole trader is rapidly expanding, evaluate the most suitable business structure for this sole trader to now adopt.
Consider all of sole traders, partnerships, ltd’s and plc’s
Look at all advantages and disadvantages
Give a recommendation with reasons