Choosing the right legal structure:
Sole traders, partnerships, private limited companies and public limited companies.
You need to learn definitions, advantages and disadvantages of each type of legal structure. You could start here.
Or you could click on the picture:
There are some good notes on this topic from this website.
Franchising:
The owner of a (hopefully) successful business idea allows someone to trade using the business format and trademark.
The owner of the business idea is called the franchisor and the person who wants to run the franchise is called the franchisee.
Advantages and disadvantages of franchising and more from the Ashbourne College blog here.
Texas chicken - the next big thing?
Social enterprises:
Social enterprises trade to tackle social problems, improve communities, people's life chances, or the environment.
They make their money from selling goods and services in the open market, but they reinvest their profits back into the business or the local community.
And so when they profit, society profits.
Click on the picture:
Lifestyle businesses:
A lifestyle business is a business set up and run by its founders primarily with the aim of sustaining a particular level of income and no more; or to provide a foundation from which to enjoy a particular lifestyle.
Online businesses:
An online business is any business on the Internet that sells products, services, or advertising, online.
Advantages and disadvantages of this type of business here.
Growth to Public Limited Company (PLC) and stock market flotation.
Many successful private limited companies (ltd)decide to 'go public' and become public limited companies.
The process is technically called a 'flotation' as in the UK the shares are 'floated' on the London Stock exchange.
Why?
The process can raise vast amounts of money to help the business reach its objectives.
It can also make the original owners very rich.
Click here.
Advantages / disadvantages of a stock market flotation. Details here.
Link to the London Stock Exchange. Details here.
The public sector is the part of an economy that is controlled by the government.
The private sector consists of organisations owned by individuals usually with the aim of making a profit.
Unlimited liability private sector organisations:
1. Sole traders
2. Partnerships
Private limited companies (ltd)
Owned by shareholders.
Only agreed family members or business associates can own shares.
Think Levi Roots on Dragons' Den.
2. Public limited companies (plc)
The largest types of limited company.
Shares are traded on the London Stock Exchange.
When shares are first sold the company can raise vast sums of money.
Public limited companies are NOT in the public sector.
Why would the government want to own Next?
Don't get confused because of the word 'public'
There are also 'not for profit' organisations in the UK.
