Learn: Business Ownership

Welcome!Today we’re going to learn about business ownership. This is an important topic because it helps us understand how businesses are structured and how decisions are made. Let’s dive in!

What is Business Ownership?Business ownership refers to the way a business is structured and who has control over it. It affects how decisions are made, how profits are shared, and how much risk the owners take on.

Types of Business OwnershipThere are different types of business ownership. Each type has its own advantages and disadvantages, which depend on factors like the number of owners, liability, and how profits are shared.

Sole TradersA sole trader is a business owned and controlled by one person. They make all the decisions and keep all the profits, but they also take on all the risks. For example, a small corner shop might be owned by a sole trader.

PartnershipsA partnership is a business owned by two or more people. They share the profits as well as the risks and responsibilities. Partnerships are common for businesses like law firms or accountancy practices.

Limited CompaniesA limited company is owned by shareholders. The business has limited liability, which means the owners are only responsible for the money they invest. There are two types: private limited companies (Ltd) and public limited companies (Plc).

Not-for-Profit OrganisationsNot-for-profit organisations, like charities, are run to benefit the community rather than to make a profit. Any money earned is reinvested into the organisation’s goals, such as helping people or protecting the environment.

Review Time!Great work! You’ve learned about different types of business ownership, including sole traders, partnerships, limited companies, and not-for-profit organisations. Let’s test your understanding with a few questions.