100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Business IGCSE Ownership notes £2.56
Add to cart

Interview

Business IGCSE Ownership notes

 7 views  0 purchase

Business Pearson Edexcel IGCSE notes on Ownership

Preview 2 out of 5  pages

  • January 12, 2023
  • 5
  • 2022/2023
  • Interview
  • Unknown
  • Unknown
book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:
All documents for this subject (189)
avatar-seller
SKH392
Ownership February 26, 2021

Types of Ownership
• Sole trader
• Partnerships
• Limited companies (private and public)
• Franchises
• Social enterprises
• Multinationals
• Public corporations

Characteristics relating to size
• Concepts of risk, ownership and limited liability.
• Public corporations – reasons for and against public ownership.
• Ownership, control, sources of finance, use of profits, stakeholders and shareholders.
• Appropriateness of different forms of ownership.

Public Sector vs. Private Sector
➢ Public Sector owned and controlled by the state. Funded via taxes, government borrowing
and some charges to users. Main focus on providing services that are needed.
➢ Private sector own and controlled by an individual or groups of individuals. Funded by
personal investment, personal borrowing. Main focus on profit.

Public Corporations
➢ Includes all the organisations that are controlled by the government.
➢ Focus on customers service and are non-profit making.

Advantages of Public Corporations Disadvantages of Public Corporations
• Provides some of its services to all • Often considered to be beaurocratic.
consumer. • As there's no profit motive, there's
• As a public sector organisation, it often a lack of innovation.
faces little competition. • A change of government is likely to
• Provides services that could be mean changes in priorities and so
unprofitable if provided by firms in changes in funding and spending.
the private sector. • Can often 'crowd out' private firms.
• Provides goods and services for those
members of the community who
cannot afford them.

Sole trader
✓ Specialisation – the skills that the sole trader has.
Partnership
✓ Deed of partnership – the document that the partners complete so they know how much
control and what % of the profit each partner is entitled too.
Limited Companies
✓ Private limited company – a company whose shares are not sold on the stock market.
✓ Public limited company – a company whose shares are sold on the stock market and anyone
can buy them.
Page 1 of 5

, Ownership February 26, 2021

✓ Memorandum and Articles of Association – the two documents that must be completed
before the limited company can start trading.
✓ Shareholders – these are the owners of the business. They own a ‘share’ of the company. The
bigger their share the more control that they have.
✓ Dividends – this is the reward given to shareholders if the business makes a profit.
Franchises
✓ Franchise – a type of enterprise in which a sole trader can pay an existing business to use their
name and sell their product for a fee.
✓ Franchisee – the sole trader who runs the franchise.
✓ Franchisor – the business who allows the sole trader to use their name and sell their
products/services.


Type of enterprise Advantages Disadvantages Unlimited/Limited Liability

Sole Trader Easy to start. You have unlimited liability. Unlimited liability
This is an enterprise Get to keep all the profit. Lack of specialisation.
owned by 1 person. Get to make all the decisions. The hours will be long.



Partnership Spreads the risk. May be disagreements and Unlimited liability
This is an enterprise More people with different conflict.
owned by 2 to 20 people. specializations.

Limited Companies Limited liability. Not as easy to set up as a sole Limited Liability
This is an enterprise Easier to raise finance. trader – there are more
owned by shareholders. Tend to be large well regulations.
There are 2 types of recognized enterprises. You have to pay 2 types of tax.
limited company private
(LTD) and public (PLC)

Franchise 88% of franchises are You have to pay a % of your Limited Liability
This is an enterprise in profitable. profit each year to the
which a sole trader can You get support from the franchisor.
pay an existing business franchisor when you start the You cannot choose what you
to use their name and enterprise. sell.
sell their product for a The enterprise may already be The more well known the
fee. well known. enterprise is the more
expensive the start-up fee will
be.




Social Enterprise
• One kind of business structure that has grown rapidly in the UK in recent years is the "social
enterprise". Social enterprises are the most common form of "not-for-profit "enterprises.

Page 2 of 5

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller SKH392. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £2.56. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52510 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£2.56
  • (0)
Add to cart
Added