Ownership recap

Ownership recap

What are the different categories of ownership?

Remember

Type of ownership is closely linked to sources of finance:

Often comes down to a business ownership giving up control in exchange for finance which does not have to be paid back.

OR

Wishing to keep control and going for a loan which is a cost and has to be paid back.

Multiple Choice

What is the net profit margin for the following business?

Revenue = £346,000

Net profit = £28,000

• 15%

• 7.5%

• 8.1%

• 12.3%

Multiple Choice

If you have limited liability you are more likely to lose your personal assets if the business goes under

• TRUE

• FALSE

Multiple Choice

If you have unlimited liability you are more likely to lose your personal assets if the business goes under

• TRUE

• FALSE

Multiple Choice

Which out of the following will find it most difficult to raise finance?

• Sole traders

• Partnerships

• Public Limited Companies

• Private Limited Companies

Multiple Choice

In January a business has the following:

£40,000 of new share capital

It sells 120,000 units, priced at £3 each

How much revenue does it have for January?

• £400,000

• £360,000

• £36,000

Multiple Choice

Which out of the following will find it easiest to raise finance?

• Sole traders

• Partnerships

• Private Limited Companies

• Public Limited Companies

Multiple Select

Which of the following allows owners to have limited liability?

• Sole traders

• Partnerships

• Private Limited Companies

• Public Limited Companies

• Limited Liability Partnerships

Multiple Choice

Which ownership type allows the owner to have most control?

• Sole traders

• Partnership

• Private Limited Company

• Public Limited Company

Multiple Choice

Public limited companys can only sell shares to family and friends, this can limit the amount of cash available.

• TRUE

• FALSE

Based on what you know categorise the different types of ownership in terms of the following:

Each table has a piece of A3 in front of them:​

​

What can you remember about the ownership type you have been given?​

Based on what you know categorise the different types of ownership in terms of the following:

• Control of the business – what type have the most? What the least?​

• Ability to raise finance​ ​

• What type would you use to set up your business and why?​

• What would be the best form of ownership if you want to expand quickly?​

Poll

Based on the strengths and weaknesses of each ownership type. What one would you choose if you were setting up a business?

• Sole traders

• Partnerships

• Limited Liability Partnerships

• Private Limited Company

Poll

Maro wants to set up his own gym. He has a small sum of money of his own but will require additional finance to set up the business. He is happy to give up some control if it helps him to fund the project. Would type of ownership would you recommend?

• sole trader

• Partnership

• Private Limited

• Public Limited Company

• Franchise

Poll

Susan has started V-burger a fast food restautant specilising in vegatarian burgers. She wants to expand her business quickly but does not have the finance or resources to do so. She is happy to share profits and give up some control. Would type of ownership would you recommend?

• sole trader

• Partnership

• Private Limited

• Public Limited Company

• Franchise

Ownership style questions​

Remember – 10 mark questions require:

• Knowledge – 2 marks

• ​Application – 2 marks (you MUST use the case study)​

• Analysis – 3 marks​

• Evaluation – 3 marks​