• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Classify the business according to its ownership, and explain the benefits and constraints of this type of ownership.

Extracts from this document...


Classify the business according to its ownership, and explain the benefits and constraints of this type of ownership. British airways is a Plc (Public Limited Company), which is incorporated, other types of business are Ltd (Private Limited Company), which is also incorporated. There is also unincorporated business, which are a sole traders and partnerships. Unincorporated businesses: An unincorporated business has unlimited liability and the owners are the business, Which means in law an unincorporated business is libel for all of its debts and is personally responsible for repaying those debts. Sole traders: A sole trader is an individual trading in his or her name, or under a suitable trading name. Advantages are: You are your own boss which gives you freedom, there are no legal formalities required before you can start which makes it simple, there is less form filling and there are no legal costs i.e. ...read more.


Advantages are: there are more possible sources of capital then if you were a sole trader as there are more people to contribute money, they could have a wider range of expertise as different people can specialise on different aspects of the business, there are people to cover for you if you're sick and unlike a limited company a partnership doesn't have to make its accounts available to the public. Disadvantages are: limited liability which means that each partner is liable for a debt and disagreements can occur between partners which could break up the business. Some examples of Partnerships are: Firms of solicitors, accountants and architects. Incorporated business: An incorporated business has limited liability and the owners are separate from the business, which means that if the business was to go into debt ...read more.


In a Plc the shareholders have a say in what goes on the business. Advantages are: limited liability, Huge amounts of money is raised from sale of shares, production costs are lower due to economies of scale and because they are so big they can dominate the market. Disadvantages are: anyone can buy a share in the business, there not able to deal with customers at a personal level due to there size, the way they operate is controlled by various company acts to protect shareholders, there may be a divorce of ownership and control which might lead to the interests of shareholders being ignored and they can be inflexible due to size as well. Some examples of Plc are: large companies such as ICT, Tesco, British steel and of course British Airways. Gary Harrison ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. The type of ownership Cadbury Schweppes PLC.

    * John could be sued by his customers, due to a disagreement because sole traders are unincorporated businesses.

  2. Exmaining different types of business ownership with examples of each.

    Scale Radiant Hair and Beauty is a local business because there is only one shop and that is in one area- Bermondsey. Partnership A partnership is a company that is run by 2 to 20 people who all share the profits and losses, usually equally.

  1. British Airways ownership. British Airways is a public limited company, which means that ...

    Shareholders may sell shares if payment is poor, they don't have to ask permission from the boss. Original owner may lose overall control of the company because the shares are sold to anyone and the company could possibly be taken over by them.

  2. English for business

    The Media It is impossible to imagine a modern society functioning without the media which remains a powerful means of spreading news and information. We want to get informed and the T.V., the press, the radio have turned out to be great transformers of minds or society.

  1. Business Studies

    - The business needs to decide where consumers will be able to purchase it - Issues such as: storage and distribution need to be considered * Implementation, monitoring and controlling - developing a financial forecast, comparing actual and planned results and revising the marketing strategy Implementing > Once the market

  2. Business studies - Business Plan

    There are two channels of communication vertical and horizontal, vertical is when information travels up and down the chain of command where as horizontal is the passing of information through employees at the same level. There are two types of communications formal and informal, formal communication is the sending or

  1. Business Ownership

    They are operating a business as joint owners. Partnerships are relatively small. They include accountants, dentists and estate agents. Many partnerships exist in professions where the professional exist in professions where the professional body insists that members are personally responsible for their actions. There are also a few larger organisations which are run on a partnership basis where the employees become partners when the join the company.

  2. Setting up a small or medium sized business.

    National coffee shops such as Starbucks, Costa and Greggs. 2. Locally owned and operated cafes. What will make Brown coffee Lounge stand out from all its competitors are: * The main differentiator is The Brown coffee lounge's focus on providing a significant benefit to the community through a possible 7% contribution to customer-identified charities or city academies.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work