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Business Studies - Different Types of Business


Lesson 4

Lesson 4

Published in Business , News & Politics
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  • 1. Business Computing
    Aj Jamie
  • 2. Quiz Answers
    Founded: To set up or create a company or organisation.
    Commission: A fee for services rendered based on a percentage of an amount received or collected or agreed to be paid. EBay receives a small commission on every sale, less than 1%.
  • 3. Quiz Answers
    What type of Business is EBay?
    It is a service business
    Provides an auction service to customers.
    It is also a retail business
    EBay also has online shops selling a variety of goods.
  • 4. Quiz Answers
    Overhead Costs: refers to an ongoing expense of operating a business. The term overhead is usually used to group expenses that are necessary to the continued functioning of the business, but that do not directly generate profits.
    Typical examples of overhead expenses include rent, utilities and permits to operate a business.
  • 5. Quiz Answers
    Profit = Revenue (money coming in) minus Costs (money going out)
    Revenue: $1032 million ($1.032 billion)
    Costs: $509 million
    $186 million
    Profit: $337 million
  • 6. Business Ownership
    Here are some basic ways to run a
    Sole Proprietorship
    General Partnership
    Limited Partnership
    Private Limited Company
    Public Limited Company
  • 7. Sole Proprietorship
    Janet Peters owns a small noodle shop in Central festival. She employs 2 members of staff, that work for her.
    The Business is named PK NOODLES.
    Janet pays all expenses herself and receives any profit the business makes. However, she must cover any losses the business may run up.
  • 8. Sole Proprietorship
    As Janet runs this business ALONE this business is known as a Sole Proprietorship.
  • 9. General Partnership
    Two years later and PK NOODLES is very successful. She decides to open another noodle shop in Big C.
    Janet finds it hard to the accounting for PK NOODLES, and a friend John Martins decides to invest in the business and become an equal partner.
  • 10. General Partnership
    Janet concentrates on running the restaurant whilst John takes care of the accounts.
    As TWO (or more) equal partners control the
    business, it becomes a General Partnership.
  • 11. Limited Partnership
    PK NOODLES becomes even more successful. A new noodle store is opened in Hat Yai.
    Janet and John decide to appoint 3 Limited Partners, who each buya small share in the company, but have limited control.
  • 12. Limited Partnership
    PK NOODLES is owned as follows:
    Janet - 44% (General partner)
    John - 44% (General partner)
    3 Limited partners – 4% each
    Janet and John are still the MAIN owners of PK NOODLES, but the limited partners are responsiblefor their share of any loss the company makes. They will also receive a share of the profit!
  • 13. Private Limited Company
    Staff, friends and relatives see the success PK NOODLES is having.
    Some ask Janet and John if they can purchase a SHARE in the company.
    By purchasing SHARES in the company these people can make a profit if the business is successful.
    However they can lose this money (from buying shares) if the business fails. However they ARE NOT responsible for any loss the business may suffer.
  • 14. Private Limited Company
    Janet and John sell 10% of their shares each.
    10 people buy 2 shares, each worth 1% of the company.
    Janet and John are now the DIRECTORS of PK NOODLES, the rest of the owners become SHAREHOLDERS.
    PK NOODLES is now a Private Limited Company.
  • 15. Public Limited Company
    PK NOODLES is one of the most successful companies in Thailand. The DIRECTORS and SHAREHOLDERS think they can become an international business.
    However to do this they need investment so they decide to sell shares to the public.
    To do this they must register the company as a Public Limited Company.
  • 16. Public Limited Company
    SHARES for PK NOODLES are traded on the stock market.
    The business now has a responsibility for it’s shareholders.
    The value of shares will go UP if the company
    does well, or DOWN if the company is doing poorly.
  • 17. Franchise
    Franchising is a method of doing business where a business (franchisor) licenses (allows) proven methods of doing business to an individual or business (franchisee) in exchange for a payment, fees and a percentage of sales or profits.
    For example, KFC in Thailand is run as a franchise business. A person will pay money to KFC in America and are given training, advertising and recipes in exchange.
  • 18. Task Today
    We have looked at six different types of business. Your task is to do some research and find one example of a local or national business for each different type.
    I want to see that you understand the different types of business. If you can’t find examples use examples from your own experience. What type of business do you think your local restaurant is? How about your local supermarket?
    I want to see a few sentences explaining your choices in a PowerPoint presentation.
  • 19. Pedro’s Pizza Paradise – Patong
    This is a general partnership.
    This business is owned equally by Pedro Vialli and SomchaiSamlikul. Pedro is the chef whilst Somchai looks after the accounts and promotes the restaurant. They employ about 4 waiting staff and a cleaner.