Learn: Ownership

Welcome!Today we'll explore the topic of Ownership in business. This is about the different types of businesses and who owns them. Let's start learning!

What is Ownership?Ownership refers to who legally owns a business and controls its decision-making. Different types of ownership exist, such as sole traders, partnerships, and limited companies. The type of ownership affects how a business operates.

Sole TraderA sole trader is a business owned and controlled by one person. They are responsible for all profits and losses. This is a common form of ownership for small businesses, such as local shops or freelance workers.

PartnershipA partnership is a business owned by two or more people. They share profits, decision-making, and responsibilities. Examples include law firms or dental practices.

Limited CompaniesLimited companies are businesses owned by shareholders. There are two types: private limited companies (Ltd), where shares are not sold to the public, and public limited companies (Plc), where shares can be traded publicly. Limited liability means owners are only responsible for debts up to the amount they invested.

Not-for-Profit OrganisationsNot-for-profit organisations exist to benefit society rather than make profit. They might focus on charities, social causes, or public services, such as the Red Cross or local community groups.

Review Time!Great work! You've learned about the main types of ownership: sole traders, partnerships, limited companies, and not-for-profit organisations. Let's review what we've covered with a few questions.