This document discusses different types of businesses and employment options. It describes sole proprietorships where an individual works for themselves, taking on financial risks and rewards. Partnerships are described where 2-20 people form a business by signing an agreement to share risks, costs, profits and responsibilities. The document also discusses working for a company where one receives a salary but not share of profits. Finally, it briefly mentions the public sector, private sector and voluntary sector as options for employment.

1. Understanding
Business
You And The World Of Work

2. Different types of business
Businesses vary in size from small
business owned and run by one
person to large national and
multinational companies
employing tens of thousands of
people in many different
companies.

3. Multinational Companies

4. Working for
yourself (Sole
Proprietorship)
When you work for yourself you are called a ‘sole trader’, or a ‘sole proprietor’.
You work on your own and are responsible for your own business.
On the other hand, this can be very risky.
If your costs get out of control, you could lose a lot of money. On the other hand, if
you make a lot of money, you get to keep all of the profit.

5. Working for yourself (Sole
Proprietorship)
It can be difficult to raise
the money to start the
business.
Banks are less keen to
lend money to sole
proprietors. This is
because of the high rate
of failure. Of each three
mew businesses started
each year, two will fail. It
is very easy to lose all of
your money. This is
known as going bankrupt.

6. Working for yourself (Sole
Proprietorship)
If your business goes bankrupt, you are
personally responsible for all the money
owed to other people. This money is known
as debts. You may have to sell your car and
even your house if, as a sole trader, your
business is bankrupt.
Sole traders are very common in the service
industries. Examples include shopkeepers,
writers and hairdressers.

7. Partnerships
In a partnership, you
share the risk.
Between two (2) and
twenty (20) people run
the business.
They own it, control it,
provide the starting
money for it and share
the profits from it.
To form a partnership,
you sign a special
agreement called a
‘Deed of Partnership’.

8. Partnerships
Because more than one person is involved, it is
easier to raise money for this type of business
and to share the work and responsibility.
However, if the business fails, all the partners
must pay off the debts.
One advantage of working in a partnership is
that different people can provide different
skills.
For example, Trevor worked on his own as a
plumber and his sister Shereen worked as an
electrician. They formed a partnership with
their friend Amrit, a carpenter, to do household
maintenance work. They called themselves
Household Solutions.

9. Working for a
company
Working for a company removes a lot of risk.
You will be paid a salary by the company, and usually will not receive a share
of the profits.
This is how many people work all over the world.
However, your salary will usually be fixed. This means that even if the
company is very successful, you will still receive the same amount of money.

10. Working in the public, private or
voluntary sector

11. Working in
the public,
private or
voluntary
sector

12. Working in the public,
private or voluntary sector
A third option is working in the
voluntary sector. This can involve
working as a volunteer or as a paid
member of staff, for some sort of
charity. For example, Tina worked as
a nurse until she retired. Now she
works as a volunteer for Age
Concern, which helps and supports
older people.

13. In groups
1. On your own, list the advantages
and disadvantages of:
Working for yourself
Working for a company
Share your views in a group discussion.
2. Discuss what are the differences
between working in the private sector
and public sector. Which sector
provides more job security? Which
provides the most rewards? Which is
more risky?