There are basic forms of business ownership.

1. Forms of business

2.  There are the basic forms of business
ownership.
 Those are:
1) Sole trader
2) Partnership
3) Limited liability company
4) Franchises

3. 1) Sole trader
• Owns & run a business.
• Contribute capital to start the enterprise.
• Run it with or without employees.
• Tolerate losses or profits.

4. 2) Partnership
 Partnership is flexible because it can either
be a formal or informal arrangement.
 There are 2 or more owners.
 Partnership can be used for large
organizations or a small husband and wife
operation.

5. Deed of partnership contains
1) Amount of capital
Each partner should provide capital
(starting cash).
2) How profit or losses should be divided.
3) How many votes (shares) that each partner has
(usually based on proportion of capital provided.)
4) Rules on how to take on new partners.
5) How the partnership is brought to an endor
how a partner leaves.

6. 3) Limited liability company (LLC)
• Own by its shareholders.
• Run by directors.
• Liability is limited.

7. • Limited liability means,
- the investors can only lose the money.
- they have invested and no more.
• If the company fails,
they can only lose what they put in.
• For people or businesses who have a claim
against the company,
- they can only recover money from the
existing assets of the business.
- they can not claiim the personal assets of
the shareholders, to rcover amounts owned by
the company.

8. • Limited companies can either be private
limited companies or public limited
companies.
• Private limited company might want to become
a “plc” because shares in a private limited
company cannot be offered for sale to the
general public.
• So, restricting availability of finance,especially
if the business wants to expand.

9. 4) Franchises
• Where a business sells a sole proprietor right
to set up a business using their name.
• Franchisor,
- the business who sells the right to another
business to operate a franchise.
- they may run a number of their own
businesses.
• But, may want to let others run the business in
other parts of the country.

10. • Franchise is bought by the franchisee.
• Once they have purchased the franchise they
have to pay a proportion their profits to the
franchiser on a regular basis.
• Depending on the business involved the
franchiser may provide training,
management expertise & national marketing
campaigns.

11. Thank you