Types of Ownership

Types of Ownership

Sole trader: A business owned and controlled by one person e.g. a window cleaner

Partnerships: A business owned by between 2-20 people. They share knowledge and skills

Private Limited Companies: This business must be registered before it can operate. The shareholders own the business. It is often small and family owned

Public Limited Companies: This business must be registered before it can operate. The shareholders own the business. The shares are sold on the stock exchange – often-large business

Government departments and agencies: E.g. HM Revenue and Customs and Child Protection Agency. These are often ran by civil servants

Worker cooperatives: This is a body that is owned by the people who work for it. Each member buys shares and contributes to decisions

Charitable Trusts: An organisation that is set up to raise funds and support others or a good cause.

Task 1 – Part 1

Type of Ownership:

Charitable Trusts

Definition:

An organisation that is set up to raise funds and to support others and for good causes.

Advantages: 

·      They help those in need

·      To raise awareness

Disadvantages:

·      Volunteers don’t get paid

·      Rely on volunteers & donations

·      Profits have a chance of going to the wrong part of the company

Examples in business:

·      Cancer Research UK

·      Macmillan

·      British Red Cross Foundation

·      Help for Heroes

·      Age UK

·      Teenage Cancer Trust

Part 2

Type of Ownership:

Sole Trader

Definition:

A business owned and controlled by one person e.g. a window cleaner

Advantages:

·      Get to make your own decisions

·      Fulfil your passion

·      To create a legacy

·      Hours are flexible

Disadvantages:

·      Very hard work

·      You are very independent

·      Could fail

·      Taxes

Examples in business:

·      CallyCo

·      Krushr

·      Energy UK