Learn: Business Ownership

Welcome!Today, we're exploring business ownership. We'll discover the different types of ownership and why they matter to businesses. Let's get started!

What is Business Ownership?Business ownership refers to the legal structure of a business. It determines how decisions are made, how profits are shared, and the level of responsibility for debts. Choosing the right ownership type is critical for success.

Sole TraderA sole trader is a business owned and run by one person. They have full control of decisions but also unlimited liability, meaning they are personally responsible for debts. This is a common structure for small businesses.

PartnershipA partnership is a business owned by two or more people. Partners share responsibilities, profits, and liabilities. It's often used by professionals like solicitors or accountants.

Private Limited Company (Ltd)A private limited company (Ltd) is owned by shareholders, often family or friends. Shareholders have limited liability, meaning they only lose what they invest if the business fails. This structure suits growing businesses.

Public Limited Company (Plc)A public limited company (Plc) sells shares on the stock exchange to raise capital. It has limited liability and is suitable for larger businesses. However, it requires more regulations and public transparency.

Not-for-Profit OrganisationsNot-for-profit organisations are businesses like charities that aim to meet social or community goals instead of making a profit. Any surplus is reinvested to achieve their mission.

Factors to ConsiderWhen choosing a business ownership type, factors like control, liability, and finance are important. For example, sole traders have full control but face unlimited liability, while Ltds have limited liability but must share control with shareholders.

Review Time!Great work! You've learned about different types of business ownership and their key features. Now let’s test your understanding with a quick review.