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 tradingmethods, 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 soletraders
key features of a partnership are
between 2 and 20people
sharedprofit and losses
shared decisions
unlimited liability
advantages of a partnership
easy to setup
sharedresponsibility for debts
shareddecisionmaking and responsibility
each partner invest capital
wider range of skills and expertise
disadvantages of a partnership
unlimited liability
disagreements
profits shared
some partners may notwork 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 businessdebts
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 largecompanies
shares for sale on the stockexchange
what is a public limited company
a public limited company is a company that offers its shares to the public. listed on the stockexchange so their shares are bought and sold