Презентация на тему Types of business ownership

Mixed Economy
A Mixed Economy has:
Private ownership of business/organisations and
Public

control of business/organisations
Private ownership involves individuals and groups of people who set up and run a business
Public control involves the government running organisations on behalf of the general public

Limited Company (plc)
Franchise
Public Sector
Public Corporations
Municipal Undertakings
Trusts

to any number of employees

A Sole Trader is in

the Private Sector

all profits
Easy to set up – few legal requirements

Disadvantages
Unlimited

liability
No one to share decision making
Lack of specialisation
No continuity of existence
Time off/holidays
Limited finance

to any number of employees
A Sleeping Partner - someone

who invests money but takes no part in the day to day running
A Deed of Partnership - lays out rules for running and dissolution of the Partnership eg sharing of profits

A Partnership is in the Private Sector

up – few legal requirements
Disadvantages
Unlimited liability
Profits have to be

shared between partners
No continuity of existence
Partners may have disagreements
Limited finance

has the following key features:
Ltd after it’s name
Owners called

shareholders
A separate legal existence from owners
Shareholders who are family and friends
Governed by two legal documents:
Memorandum of Association
Articles of Association
Controlled by a Board of Directors
Run by a Managing Director

A Private Limited Company is in the Private Sector

can occur
Disadvantages
More complicated to set up - legal formalities
Loss

of individual control

has the following key features:
plc after it’s name
Owners called

shareholders
A separate legal existence from owners
Shareholders who are members of the general public
Governed by two legal documents:
Memorandum of Association
Articles of Association
Controlled by a Board of Directors
Run by a Managing Director

A Public Limited Company is in the Private Sector

can occur


Disadvantages
More complicated to set up - legal formalities
Loss

of individual control
Greater threat of takeover

Franchiser) allows another business (Franchisee) to trade under their

name
Also a method of business growth
Some examples of franchises:
McDonalds
Pizza Hut
Kwik Fit
Thorntons
Also going to have another type of business ownership eg sole trader etc

A Franchise is in the Private Sector

grow
Royalties from Franchisee

Disadvantages
For Franchisee
Lack of total control

For Franchiser
Risk of

reputation from unsuitable franchisee