types of organisations

Cards (27)

  • main types of business ownership
    sole trader
    partnerships
    limited companies (private and public)
    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
  • different forms of business organisation
    • franchises
    • social enterprises
    • multinationals
  • what is a franchise
    a structure in which a business (franchisor) allows another operator (the franchisee) to trade under their name
  • what is a franchisor
    a person or business who offers to franchise to other businesses its trading methods, products
  • what is a franchisee
    person or business buying the franchise
  • what is a royalty
    a payment made to the franchisor based on the sales turnover of the franchise
  • pros and cons for the franchisor
    the franchisor is the person or business who owns the trade name which is also known as the franchise.
    they offer the franchise to the franchisee in return for a fee and a share of the profit.
    the franchise will receive support from the franchisor. they will also get all the equipment and ingredients they need to run the business.
  • social enterprises
    a business that aims to improve human or environment well being rather than make a profit for owners
  • public corporations/enterprises
    businesses owned and run by the government
  • examples of public corporations
    dubai electricity and water authority
    united states postal services
  • sole trader
    sole trader businesses are owned and ccontrolled by one person.
    the owner may decide to employ other people to help run the business but the main decisions are made by the owner.
  • can they keep profit and have control on the workers employed
    they get to keep any profit the business makes and can choose how many workers they employ. it can be very rewarding but also risky
  • sole traders - liability
    sole traders risk their own liability and if a sole trader business gets into assets, the owner may have to sell their own house or belongings to pay what is owed. this is called unlimited debt.
  • sole traders - having to do everything by yourself
    sole traders may also have to work long hours and need to be skilled at many roles in order to run the business effectively. if the owner is ill it may be difficult for the business to continue
  • partnership
    another form of business
    not as common as a sole trader, still a common business structure
    very similar with sole traders
  • key features of a partnership are
    between 2 and 20 people
    shared profit and losses
    shared decisions
    unlimited liability
  • advantages of a partnership
    easy to set up
    shared responsibility for debts
    shared decision making and responsibility
    each partner invest capital
    wider range of skills and expertise
  • disadvantages of a partnership
    unlimited liability
    disagreements
    profits shared
    some partners may not work as hard as others
  • deed of partnership
    a formally written agreement which details how a partnerships needs to be structured or run
  • what does the deed of partnership include
    how much each partner has invested
    how profits and losses are to be divided
    how all decisions are to be made
    how someone can join or leave the partnership
  • limited liability
    each shareholders liability for the company debts is limited to the amount of money that they have invested. they cannot have personal belongings taken from them in order to pay the business debts
  • shareholder
    a shareholder is someone who invests money into a limited company. each share that they buy represents a proportion of the business
  • private limited liability - key features
    owned by shareholders
    has LTD or limited after it's name
    sells shares privately - people you know
    separate legal identity
    limited liability
  • public limited companies (PLC's) examples
    netflix
    apple
    unilever
  • features of public limited companies (PLC's)
    has PLC after their name
    limited liability
    separate legal entity
    owned by shareholders
    normally large companies
    shares for sale on the stock exchange
  • what is a public limited company
    a public limited company is a company that offers its shares to the public. listed on the stock exchange so their shares are bought and sold