Learn: Ownership

Welcome!Today we'll learn about ownership, the different types of business structures, and how they operate. Let's explore this step by step!

What is ownership?Ownership refers to who legally controls and runs a business. It determines how decisions are made, how profits are shared, and who is responsible for debts. Understanding ownership is key to knowing how businesses operate.

Sole traderA sole trader is a business owned and run by one person. They have full control over decisions and keep all profits, but they also face unlimited liability (responsible for debts with personal assets).

PartnershipA partnership is a business owned by two or more people who share decision-making, responsibilities, and profits. Liability can be unlimited unless it’s a limited partnership.

Private Limited Company (Ltd)A private limited company (Ltd) is owned by shareholders, but shares cannot be sold to the public. Owners have limited liability, meaning personal assets are protected.

Public Limited Company (Plc)A public limited company (Plc) allows shares to be sold to the public on the stock exchange. Owners also have limited liability, and it is often larger than private companies.

Not-for-profit organisationsNot-for-profit organisations are businesses that aim to serve a social cause rather than make profits. Examples include charities and social enterprises. Profits are reinvested into their goals.

Review Time!Great work! You've learned about types of ownership, including sole traders, partnerships, Ltds, Plcs, and not-for-profit organisations. Let's test your understanding!