Business Ownership Business Management for Land Based Industries Learning outcomes By the end of this session you will be better able to: State the advantages and disadvantages of different types of business within the UK. Understand why businesses are owned in the way that they are.
There are two business sectors in Britain • Public Sector • Private Sector
Public Sector Owned by the government. • Government departments (e.g. Employment) • Local Authorities (e.g Trading Standards) • Health Trusts • Public Corporations
Task www.direct.gov.uk http://www.tradingstandards.gov.uk/ • Search the direct.gov website and identify 2 departments, what they do and the legislation they are responsible for implementing in a business • Search Trading Standards Wales and establish what element of businesses are regulated by them. • Produce a short presentation on both (either power point or flipchart)
Private Sector • Sole traders • Partnerships • Companies • Charities • Franchises
Sole Traders • The smallest type of business in the UK • Easy to set up • May need little money • Individual will have to invest own monies • Unincorporated – legally owner and business are the same thing • Unlimited liability – owner is responsible for debts and will have to sell up to repay debtors Can you think of any advantages/disadvantages of being a Sole Trader?
Partnerships Task • Using BTEC first business Theory Notes • Unit 1 • Partnership Watch the presentation and identify what you consider to be the advantages and disadvantages of running a partnership partnership.
Companies • Separate legal identity from owners (e.g. You would sue the company, not the individuals). • Limited liability will only lose the money they invested not their assets amd homes etc. • Profits are paid out to shareholders. • Run by directors who are accountable to shareholders.
Private Limited / Public Limited Companies We will look at the two presentations on business studies on line explaining these two types of companies. Then we will note the differences on the wipe board.
Check your knowledge • Using BTEC first business activities • Unit 1, section 1 have a go at: • Which type of business – Quiz. • Features – drag and drop • Types of business – mix and match • Interactive diagram – please print it out when finished
Activity Create a word document detailing the advantages and disadvantages of businesses being • Sole traders • Partnerships • Private Limited companies • Public limited companies • Franchises • Co operatives Try and identify 3 local businesses for each type of ownership