11-09-2013, 12:57 PM
Business ownership
Business ownership.ppt (Size: 140.5 KB / Downloads: 55)
UK business ownership
This means:
They are owned by private individuals
These individuals risk their own money
The owners’ reward is the profit they make.
Private ownership options
Sole trader – 1 owner
Partnership – 2 people or more
Private limited companies – often a family-run business with the protection of limited liability
Public limited companies – large organisations whose shares are traded on the Stock Exchange
Franchises – small business trading with agreement of large firm
Cooperatives – collectively owned by workers/customers
Key points about companies
Each company has its own identity in law.
The company employs staff, not the owner(s).
The company owns assets, not the owner(s).
The company operates until it is formally wound up or goes into liquidation.
The company pays corporation tax on its profits.
Review of main types of private ownership
Sole traders – suitable for one person running small business with low risk/little investment required
Partnership – suitable for professional groups, husband/wife businesses, small business needing different skills
Private limited company – suitable for family business, essential if risk considerable, eg through expensive stock
Public limited company – suitable for large national/international operations