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.