slides for the activies
TRANSCRIPT
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BUSINESS STUDIES
GRADE : 10TERM 2
TOPIC 4: FORMS OF OWNERSHIP
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RESOUESES USED
• PRESENTAION • SLIDES• MINDMAPS• PICTURES
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10 CHARECTORISTICS
• Authentic activities have real-world relevance• Authentic activities provide the opportunity for students to
examine the task from different perspectives, using a variety of resources
• Authentic activities provide the opportunity to collaborate• Authentic activities provide the opportunity to reflect• Authentic activities allow competing solutions and
diversity of outcome
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Advantages and DisadvantagesLtd• Easier to attract new shareholders due to limited liability• Tend to be smaller, therefore shareholders can be closer to the
business operation• Shareowners usually run the business and look for long term
profit maximisation• Less capital than PLC’s
Plc• More information has to be given out and made public (which can
be costly to prepare)• More rules regarding business practice• Short term share investment discourages enterprise• Can raise large amounts of capital from selling shares• Gives the company prestige.
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Private vs publicPrivate: • Have the letters ‘ Ltd’ or the word ‘Limited’ after
their name• Shares are privately owned and can only be sold with
the permission of the shareholders• Generally few shareholders• Generally greater control by the share owners• Lever Brothers Ltd were a private limited companyPublic: • Have the letters ‘plc’ after their name• Shares are openly traded on the Stock Exchange• Generally greater numbers of shareholders• Control is delegated to directors/manages
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Partnership• A partnership has between 2 - 20 owners.• The partners have unlimited liability – if
the business goes bankrupt they can lose personal possessions.• Partners share the risks, can both put in
ideas and share the profits.• Disagreements may occur.• A Deed of Partnership is a legal document
which may be drawn up to agree the details of the partnership
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test style questions
Question 1
a. What is meant by the term ‘public limited company’? (2)b. Describe two characteristics of a public limited company.
(4)