20th February 2007

In the second class of English, Keith explained the different forms of business ownership and advantages and disadvantages.

The private sector is a business activity owned financed and controlled by private individuals. There are differents types:

• Sole Traders: Owned financed and controlled by one individual but can employ other staff. Common in local building firms, small shops, restaurants, butchers etc

• Partnerships: Owned, financed and controlled by upwards of 2 partners. Common in professions – lawyers, accountants, architects, surveyors, estate agents, vets etc

• Private Limited Companies: Owned by between 2 and 50 shareholders.

• Public Limited Companies (PLCs): Owned by minimum of 2 but no maximum number of shareholders.

• Co-operatives: Ownership, finance and control in hands of ‘members’. Exists for the benefit of ‘members’

Consumer co-ops – members buy goods in bulk, sell to members, divide profits between members

Worker co-operatives – workers buy the business and run it – decisions and profits shared by members

Producer co-operatives – producers organise distribution and sale of products themselves

• Franchises: Method of business ownership backed by established ‘brand’ name. Common franchises – Body Shop, McDonalds, Burger King, Pizza Hut, Benetton, Toys R Us, IKEA, Kentucky Fried Chicken

• Charities