Types-of-Business-Ownership-Activity-Wor( Two teachers ) PDF

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Types of Business Ownership Video and Activity Worksheet Watch the video named ‘Types of Business Ownership Explained | Sole Traders, Partnerships, LTD, PLC and Franchise’ in the Two Teachers YouTube Channel ‘Business Studies Video’ Playlist and answer the following questions. http://www.youtube.com/c/TwoTeachers

1. Business Ownership Word Search - Complete the ‘types of business ownership word search’ below, finding the words listed on the right.

2. Sole Trader vs Partnership Starting a Business Scenario: Rheo has just completed a business qualification and has decided to set up a small digital marketing business. He plans to start the business as a sole trader with no employees but his friend (Lucy) who studied business in the same class wants to join Rheo and set up a digital This resource is supported by a video on our YouTube Channel @TwoTeachers. Follow us on the following socials for lots more business content: Twitter @TwoTeachersBiz | Facebook @TwoTeachersBusiness | Instagram @TwoTeachersBiz

marketing business together as a partnership. He has come to you as he is not sure what to do and does not understand the difference between the two options and how it will impact him. Task 2a: Rheo has asked you to specifically explain what the difference is between a sole trader and a partnership business, including the advantages and drawbacks of each.

Sole Proprietorship is a business organization owned and controlled by one person . Sole traders can employ other workers, but only he must invest and own the business. A partnership is a legal agreement between two or more people to own, finance and run a business jointly and to share all profits. The advantages of Rheo being a sole trader would be that it is easy to set up, there are very few legal formalities involved in starting and running a sole proprietorship. He also has full control over the business. Decision-making is quick and easy, since there are no other owners to discuss matters with. Sole trader receives all profit since, there is only one owner, he will receive all of the profits the company generates. The disadvantages Rheo would face by being a sole trader is that if the business has bills/debts left unpaid, legal actions will be taken against the investors, where their even personal property can be seized, if their investments don’t meet the unpaid amount. This is because the business and the investors are the legally not h separate. Rheo has to take full responsibility since, there is only one owner, the sole owner has to undertake all running activities. He would have to face lack of continuity because if the owner dies or retires, the business dies with him. The advantages of being in a partnership with his friend Lucy is that it is similar to sole traders, very few legal formalities are required to start a partnership business. Lucy can can provide new skills and that can be used by the business to improve

In my opinion Rheo should choose his business to be a partnership with his friend Lucy because she can can provide new skills and that can be used by the business to improve business profits. There would be more d capital investments, that is partners can invest more capital than what s , a sole trade only by himself could. Similar to sole traders, very few legal t formalities are required to start a partnership business. A partnership agreement is a legal document that all partners have to sign, which g forms the partnership. There is no need to publish annual financial o accounts. Therefore, I think Rheo should choose to partner with his . friend Lucy. a d

This resource is supported by a video on our YouTube Channel @TwoTeachers. Follow us on the following socials for lots more business content: Twitter @TwoTeachersBiz | Facebook @TwoTeachersBusiness | Instagram @TwoTeachersBiz

Being in a joint stock company. These companies can sell shares, unlike partnerships and sole traders, to raise capital. Other people can buy these shares and become a shareholder of the company. Therefore, they are jointly owned by the people who have bought its stocks. These shareholders then receive part of the profit. The companies also enjoy continuity, unlike partnerships and sole traders. That is, the business will continue even if one of its owners retire or die. Private Limited Companies are with one or more owners who can sell its’ shares to only the people known by the existing shareholders Public Limited Companies are with two or more owners who can sell its’ shares to any individual/organization in the general public through stock. The advantages of being in a Public Limited Company there is limited liability this is because, the company and the shareholders have separate legal identities. The disadvantages of would be that it requires to disclose financial information. Sometimes, private limited companies are required by law to publish their financial statements annually. Private Limited Companies cannot sell shares to the public. Their shares can only be sold to people they know with the agreement of other shareholders. Transfer of shares is restricted here. This will raise lesser capital than Public Ltd. Companies. The advantages of being in a Public Ltd. Company is than they raise huge amounts of capital, selling shares to other people, raises a huge aThe owner of a business grants a licence to another person or business to use their abusiness idea often in a specific geographical area. Fast food companies such as als aMcDonald’s and Subway operate around the globe through lots of franchises ines different countries.ial problems since, they are very large, they become very m difficult mana$395,500 to $1.6 million may occur which will slow down Dunkin’-tocost:decision-making. Taco Bell- cost:- $525,500 to $2.96 million may be a divorce of ownership and control. The f the company when other large Mac D- costs: - $1.3 million to $2.2 million shareholders outvote t tors control company decisions. The UPS Store costs:- $138,400 to $470,000 Ace Hardware cost’s:- $286,000 to $2.1 million

Task 4b – Now you have the cost information for 5 different franchise businesses, you are required to choose and justify which one you would choose to run if you had the funds. To help you justify your choice you must consider as many factors as you can, such as: the location where you would open it, who the target market would be, and what the current demand for the business is etc.

I would choose Mac d as my business franchise because it already has a huge name in the market. The location I would choose would be a crowded area where there would be people willing to buy after a long day. The target market would be everyone from a child to an adult. The financial cost would be between $1.3 million to $2.2 million. The total units are 38,108 It appears that the company is betting on tech solutions and platforms that can optimize speed of service and make an T already-fast place more accessible than ever. While it’s too early to definitively tell whether McDonald’s $10 billion system-wide store redesign and investment in tech a success is. McDonald’s is now filling 10 delivery orders every second....