Types of Business Ownership Video and Activity Worksheet

Watch the video named ‘Types of Business Ownership Explained | Sole Traders,
Partnerships, LTD, PLC and Franchise’ in the Two Teachers YouTube Channel
‘Business Studies Video’ Playlist and answer the following questions.

http://www.youtube.com/c/TwoTeachers

1. Business Ownership Word Search - Complete the ‘types of business ownership word search’ below, finding the
words listed on the right.

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2. Sole Trader vs Partnership Starting a Business Scenario: Rheo has just completed a business qualification and
has decided to set up a small digital marketing business. He plans to start the business as a sole trader with no
employees but his friend (Lucy) who studied business in the same class wants to join Rheo and set up a digital
marketing business together as a partnership. He has come to you as he is not sure what to do and does not
understand the difference between the two options and how it will impact him.

Task 2a: Rheo has asked you to specifically explain what the difference is between a sole trader and a
partnership business, including the advantages and drawbacks of each.

Task 2b: After explaining the differences above, Rheo has now asked you to recommend with justification which
option he should choose for his digital marketing business.

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3. Becoming a Limited Company Scenario: Private vs Public – Rheo thanks you for all your help above and
eventually decided to go into partnership with Lucy, naming their business ‘Rhucy Marketing’. It is now five years
later and what a great five years it’s been for them both. The digital marketing business has been very
successful, they have a number of loyal customers, three employees and a city centre office. Furthermore, they
have just updated their business plan and acquired some funding to support the business’ growth over the next
year.

However, they are having a big disagreement about becoming a limited company. They are considering changing
the legal status of the business to operate as a limited company (incorporation). However, Rheo is certain that if
they do, the general public can buy shares in the business and is very worried about this. Lucy is confident that
this is not the case as long as they set up as a private limited company and not a public limited company.

Task 3a Help Rheo and Lucy settle the debate by explaining the key differences between a Private Limited Company
(Ltd.) and a Public Limited Company (PLC) including the advantages and drawbacks of each.

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4. Finding out about Franchises

Task 4a - Firstly, explain what a franchise is below and then research the cost of 5 different franchise businesses.

Task 4b – Now you have the cost information for 5 different franchise businesses, you are required to choose
and justify which one you would choose to run if you had the funds. To help you justify your choice you must
consider as many factors as you can, such as: the location where you would open it, who the target market
would be, and what the current demand for the business is etc.

This resource is supported by a video on our YouTube Channel @TwoTeachers. Follow us on the following socials for lots more business content:
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