Learn: Ownership

Welcome!Today we'll learn about ownership in business. Ownership determines who controls a business and how profits and risks are shared. Let's explore the different types of ownership step by step.

What is Ownership?Ownership refers to who legally owns and controls a business. It also determines how decisions are made, how profits are divided, and who bears the risks. Different types of ownership suit different kinds of businesses.

Types of Business OwnershipThere are several types of business ownership, each with its own structure, level of liability, and methods of control. Let’s look at the four main types covered in the GCSE course.

Sole TraderA sole trader is a business owned and run by one person. They have full control and keep all profits, but they also have unlimited liability (meaning personal assets are at risk if the business has debts).

PartnershipA partnership is a business owned by two or more people. They share decision-making, profits, and responsibilities. Like sole traders, partners have unlimited liability, unless they set up a limited partnership.

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

Public Limited Company (Plc)A public limited company (Plc) is a business whose shares are sold on the stock market. This allows the business to raise money from the public. Like Ltds, Plcs offer limited liability to shareholders.

Not-for-Profit OrganisationsNot-for-profit organisations are businesses that aim to benefit society rather than make a profit. Examples include charities and social enterprises. Any surplus money is reinvested into the organisation's goals.

Review Time!Great work! You've learned about the main types of ownership, including their features and differences. Now let's review with some questions!

Well Done!You’ve completed the lesson on ownership. Understanding ownership is essential for knowing how businesses operate and the risks involved. Great work!