Public Sector

Responsible for public services

Financed through TAX

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Private Limited Company

A company in seperate legal entity to the owners

Limited Liability

(Coca Cola enterprise)

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Public Limited Company

Seperate legal entitiy from its owners 

Shares can be sold via stockmarket

High Profile


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Dis-economies of scale

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

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Minimum of 2 partners

Straighforward to set up 

Limited Liability

(Proffesional services: doctors)

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Sole Trader

Owned by 1 person

Can start a business with limited finance

Few legal requirments

Unlimited Liability

(Wedding Planner)

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

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Third Sector

Not Government owned

Receive funding through fundraising


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Private Sector

Business aim to make a profit

(Small business: Tesco, Electrician)

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Legal/ Administrative Requirements

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

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Control/ Decision Making

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

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Business Customers

Business that purchase other products from other businesses

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Community interest Companies

The company has its own legal identity

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

TAX must be paid on profits

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Includes voluntary + community groups

owned by 1 person

few legal requirements

Unlimited Liability

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State Government Owned (Public Sector)

Government controlled

Can support large businesses that are struggling to survive


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Business Aims

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

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Retail Customers

Customers who buy finshed products

(Frozen peas from supermarket)

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Business Activities

Tasks completed by a business to ahceive its objectives




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A period of economic decline where demand and output fall

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Unlimited Liability

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

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Economies Of Scale

Cost advantages gained when the size of a business increases

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

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Limited Liability

When the owners are liable for the debts

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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

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Legal Status

Business is a seperate entity from the owner

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Extracting + harvesting raw materials

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Manifacture of products

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Provision of services

services to the public

(Hairdresser, Schools)

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