Different types of business
There are different forms of business ownership; businesses operate differently depending on their form of ownership. Have a go at the activities below to help you to develop your knowledge of different types of business ownership.
Read the background information sheets first then see how you get on with the activities.
Jack Stewart has just been made redundant from a large tourism company and wants to start his own business and work for himself.
- Which form of business ownership is the best choice for him?
- What advice would you give Jack about the risks involved?
Ella Jones has been running a small tourism business as a sole trader for 10 years. Ella is thinking about asking her sister to become a partner in the business.
- What will this mean for Ella and her business?
- If her business grows and becomes more successful what other forms of business ownership options does Ella have? What advice would you give Ella?
Virgin Group Ltd. employs 50,000 people across 34 different countries, but is still a private limited company (Ltd). How does one man, Richard Branson, manage to keep control of his company?
A Public Limited Company (plc) is a business which is owned by shareholders who have bought shares on the stock market.
- If the business does not create the expected amount of profit how does this affect the shares?
Explain the major differences between a sole trader and a private limited company. Give named tourism examples to support your response.