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Type of Ownership.

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TYPE OF OWNERSHIP I am now going to describe the meaning of ownership and how this relates to Pizza Hut. As you are aware there are various types of ownership within a business. The two main types are known as Private limited company's (Ltd), or Public limited company (PLCs). I will firstly focus on these two types of ownership and then explain the other types of ownerships used by businesses. PRIVATE LIMITED COMPANIES (Ltd) A private limited company is a company, which may not offer its shares to the public. These companies tend to be smaller than public limited companies (PLC) although many have substantially more share capital than some of the smaller PLCs. ...read more.


A minimum of �50,000 in share capital is required before a company can go public, though most have considerably more than this. The advantages of forming a limited company are: * Shareholders have limited liability * The sale of shares enables larger sums of money to be raised * While the company has this money permanently, the individual owners can recoup their money by selling their shares to the others * Directors may be brought in as experts in certain fields The disadvantages are: * There are a number of legal requirements to fulfil in setting up a company * Regulations mean that a company is more expensive to set up than a sole trader or partnership, although the cost may be as little as ...read more.


the structure is likely to be a simple hierarchy with the sole trader being responsible for them. The successful culture in this situation is likely to be informal. To grow, the business will need extra capital. It could borrow funds or take on partners or private shareholders and set up a private limited company. If the business owed money the sole trader would be fully responsible for paying the debts. PARTNERSHIPS More partnerships are likely to have a flat structure. The term for this is when two or more people share responsibility for managing the business and sharing the profits. Partners are taken on to allow the business to grow and inject extra capital and are likely to specialise by function (finance, marketing, etc). If the business fails all the partners are liable for the debts. ...read more.

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