More Business Structure

Aims

• To ensure you all understand the key issues involved in business legal structure

• To understand the importance of liability

• To understand the benefits/drawback of each legal structure

Recap last lesson

• What is a sole trader?

• What is a ‘partnership’

• What does Ltd stand for?

• What does Plc stand for?

• What’s the main difference between Ltd & Plc?

Look at your cards…

• Find others with the same ‘card’ as you….

• Sole trader into one corner of the room

• Partnerships into one corner of the room

• Ltd’s into one corner of the room

• Plc’s into one corner of the room

You are all ‘owners’ of your business.

How many ‘owners’ are there for each group?

Some questions for you to decide on…

• Here’s some profit for you to share out…..

• What’s your share of the profits?

• You will need to ‘cut up’ your money to equally share out between business members….

• Who has the ‘most’ profit?

• Which group has the least profit?

• Which group finished the work 1st? Why…. Is this a problem for some businesses?

To what extent

does this matter?

Finance….

• Which business/company…

• Would find it the easiest to raise new funds?

• Would have had the most ‘start up capital’?

• If a business was to fail…who would have the largest debt to deal with?

Liability…..

• What is the difference between limited & unlimited liability?

• Why is it important for a business to have liability protection?

Continue with your notes on worksheet

15 mins max – rest to finish for HWK

Your quick task

Individual Work

Complete the worksheet….

Answers to worksheet

Ltd or Plc? Sort your cards out into 2 columns - do you know which companies can trade on the FTSE 100?• Alliance & Leicester• Bosch• BSKYB• Cadbury• Carphone Warehouse• Chanel,• Diesel• Ferrero Haribo,• GlaxoSmithKline• HSBC• IKEA• Kingfisher• Lego

• Lidl

• Marks & Spencer Morrisons

• Prada

• Red Bull

• Reuters

• Rolls Royce

• San Miguel

• Swarovski

• Thomas Cook

• Whitbread

Ltd or Plc – the answers….

• Alliance & Leicester

• Carphone Warehouse

• GlaxoSmithKline

• HSBC

• Kingfisher

• Thomas Cook

• BSKYB

• Cadbury

• Morrisons

• Marks & Spencer

• Rolls Royce

• Reuters

• Whitbread

• Ferrero Haribo,

• Swarovski

• Chanel,

• Diesel

• Bosch

• IKEA

• Lidl

• Lego

• Red Bull

• Prada

• San Miguel

Homework….

• Finish notes on different business legal structure.