This document provides information about different forms of business ownership, including limited companies, public limited companies, and partnerships. It outlines key advantages and disadvantages of limited companies and public limited companies, such as limited liability, ability to raise capital, and level of control. Characteristics of private and public companies are also compared, such as share ownership and number of shareholders. Partnerships are defined as having between 2 to 20 owners who have unlimited liability and share risks and profits.

1. BUSINESS STUDIES
GRADE : 10
TERM 2
TOPIC 4: FORMS OF OWNERSHIP

2. RESOUESES USED
• PRESENTAION
• SLIDES
• MINDMAPS
• PICTURES

3. 10 CHARECTORISTICS
• Authentic activities have real-world relevance
• Authentic activities provide the opportunity for students to examine the task
from different perspectives, using a variety of resources
• Authentic activities provide the opportunity to collaborate
• Authentic activities provide the opportunity to reflect
• Authentic activities allow competing solutions and diversity of outcome

7. Advantages and DisadvantagesLtd
• Easier to attract new shareholders due to limited liability
• Tend to be smaller, therefore shareholders can be closer to the business operation
• Shareowners usually run the business and look for long term profit maximisation
• Less capital than PLC’s
Plc
• More information has to be given out and made public (which can be costly to
prepare)
• More rules regarding business practice
• Short term share investment discourages enterprise
• Can raise large amounts of capital from selling shares
• Gives the company prestige.

8. Private vs public
Private:
• Have the letters ‘ Ltd’ or the word ‘Limited’ after their name
• Shares are privately owned and can only be sold with the
permission of the shareholders
• Generally few shareholders
• Generally greater control by the share owners
• Lever Brothers Ltd were a private limited company
Public:
• Have the letters ‘plc’ after their name
• Shares are openly traded on the Stock Exchange
• Generally greater numbers of shareholders
• Control is delegated to directors/manages

9. Partnership
• A partnership has between 2 - 20 owners.
• The partners have unlimited liability – if the business
goes bankrupt they can lose personal possessions.
• Partners share the risks, can both put in ideas and share
the profits.
• Disagreements may occur.
• A Deed of Partnership is a legal document which may
be drawn up to agree the details of the partnership

11. test style questions
Question 1
a. What is meant by the term ‘public limited company’? (2)
b. Describe two characteristics of a public limited company. (4)