1. Investigating business
Business ownership:
types of organisation

2. How to organise a business
Sole trader
Partnership
Private limited company
Public limited company
Co-operative
Franchise

3. About sole traders E.g. window cleaner, plumber Small in size
Unlimited liability (risk of bankruptcy)
Unincorporated (legal person)
Advantages: setting up costs, profits
Disadvantages: decisions, responsibility

4. About partnerships E.g. doctors, dentists, lawyers
2 to maximum 20 partners
Unlimited liability (risk of bankruptcy)
Unincorporated (legal person)
Advantages: investment, responsibility
Disadvantages: decisions, profits

5. About private limited companies
E.g. Sainsbury’s Supermarkets Ltd
No limit to the no. owners (shareholders)
Limited liability (risk of liquidation)
Incorporated (legal person)
Advantages: raise funds by selling shares
Disadvantages: privacy, share trading

6. About public limited companies
E.g. Iceland Foods plc
No limit to the no. owners (shareholders)
Limited liability (risk of liquidation)
Incorporated (legal person)
Advantages: raise funds by selling shares
Disadvantages: privacy, share trading

7. About co-operatives E.g. The Co-operative Group
Worker vs. consumer (retail) co-ops
Limited liability (risk of liquidation)
Incorporated (legal person)
Advantages: equal profits, ethical working
Disadvantages: decisions, funds, staffing

8. About franchises E.g. McDonalds Type of marketing arrangement
Trade as any of the 4 types of business
Franchise often a well known name
Er: advertising, advice, tested product
Ee: pays set up fee plus ongoing royalty

9. Business ownership
End of presentation