Different Types Of Business Part 1 T1

1. CLE
Different Types of Business
Types of Businesses
Sole Traders
Partnerships
Privates
Limited
Company
LTD (next
lesson)
Public Limited
Company
PLC (next lesson)
Franchises
Multinational
Companies
(Next Lesson)

2. CLE
Sole Traders
•Its very easy to set up as a sole trader.
•Sole Traders contribute to 90% of the British
Economy.
•High Risk is involved in owning a sole trader
business you are liable for the business.
•A sole trader is owned by and controlled by one
person. 

3. CLE
Sole Traders : Personal Qualities
•You will need certain qualities to succeed as a sole proprietor. Some of the
most important are:
Persistence
Enthusiasm
Ability to work hard
Willingness to take risks
Organisational Skills
Tolerance and Patience

4. CLE
Sole Traders
•A Sole Trader has to make all the decisions about
the business.
•Sole Trader has to use their own money or
borrow money from friends or banks.
•The princes trust and the government give start
up grants to young people setting up a business.
•Sole Traders have unlimited liability.

5. CLE
Partnerships
•Partnerships are owned by at least 2 partners 
•You can have up to……..

20 people as partners.
•Sleeping partners take no active role / part in the
business.
•Responsibility is shared and different people bring in
expertise.
•Partners also have unlimited liability.

6. CLE
Partnerships
•Most Partnerships write a Deed of Partnerships – a set of
rules to follow if trust between the partners break down.
•The deed covers the sharing of profits and losses, the
financial contribution of each partner, their
responsibilities, and how to add more partners.
•1980 Partnership Act means that without a deed the
partners will share all losses and all profits equally.

7. CLE
Franchises
•A Franchise is an agreement by which a company
(the franchiser) allows a smaller firm (the
franchisee) to trade goods or services under its
brand name.
•They have better chance of establishing new
businesses than sole trader.