Business

Responsible for public services

Financed through TAX

A company in seperate legal entity to the owners

Limited Liability

(Coca Cola enterprise)

Seperate legal entitiy from its owners 

Shares can be sold via stockmarket

High Profile

(Tesco)

When a business becomes too large, the cost per unit may increase and the business becomes more insufficient

Minimum of 2 partners

Straighforward to set up 

Limited Liability

(Proffesional services: doctors)

Owned by 1 person

Can start a business with limited finance

Few legal requirments

Unlimited Liability

(Wedding Planner)

Business owners must consider the financial risk involved when choosing a form of ownership

Not Government owned

Receive funding through fundraising

(Charities)

Business aim to make a profit

(Small business: Tesco, Electrician)

Easier to start up as a sole trader than a limited company, from both a legal and administrative view

Many influence the type of onwership chosen, depending on the timescale

The form of ownership chosen will influence the level of control the owners have with regard to decision making

Business that purchase other products from other businesses

The company has its own legal identity

Companies of all sizes / have social / community benefits at heart

TAX must be paid on profits

Includes voluntary + community groups

owned by 1 person

few legal requirements

Unlimited Liability

Government controlled

Can support large businesses that are struggling to survive

(Bank)

A summary of what the business wants to acheive in the future

Customers who buy finshed products

(Frozen peas from supermarket)

Tasks completed by a business to ahceive its objectives

(Buying)

(Selling)

(Producing)

A period of economic decline where demand and output fall

When the owner of a business are personally liable for all debts 

Cost advantages gained when the size of a business increases

(e.g. suppliers may offer discounts to those placing large orders)

When the owners are liable for the debts

Some forms of ownership require more paperwork and expense

A sole trader needs to register for TAX and send annual self-assessment forms to HM revenues and customs

Business is a seperate entity from the owner

Extracting + harvesting raw materials

Manifacture of products

Provision of services

services to the public

(Hairdresser, Schools)