1.3 business ownership i |
|
Information
There are many different forms of business ownership, each with its own features. The most simple form of ownership is called a Sole trader. This refers to a business owned by one person, there may be several employees but just one owner. It is the most common type of business ownership in the UK.
There are many different forms of business ownership, each with its own features. The most simple form of ownership is called a Sole trader. This refers to a business owned by one person, there may be several employees but just one owner. It is the most common type of business ownership in the UK.
Task 2
Watch the video opposite and identify the pros and cons of being a sole trader. Stretch & challenge: Do you think this form of ownership is more suited to some industries than others? |
|
Information
Pros
> Easy to set up > Little finance required > Total control of the business > Can keep all profits > Financial information is private |
Cons
> Unlimited liability > Limited capital > Hours of work > Skills shortage > Continuity |
Information
Unlimited liability is where the responsibility for all debts of a business rests with the owners of the business. If the owners fail to pay the debts of the business when required, a court may appoint bailiffs to reclaim the money. This would include seizing assesses to the value of the debt, that would be sold to recoup the money owed. |
|
Plenary
Ethical discussion Watch the video opposite and discuss the ethics of using bailiffs to collect money from business owners who have unlimited liability. |