AS Business

1. Do Now
What do you remember from ‘Understanding
Markets’ ….
Test what you’ve learned!

2. Choosing the right legal
structure

3. Learning Objectives
By the end of this lesson you should be able to:
1. Understand why it is important to have the right legal
structure and recognise the sector they fit into.
2. Identity and explain the key features, benefits and
drawbacks of various types of business.
3. Evaluate the most appropriate business structure for
particular situations.

4. What is the right legal structure?
Why it is important to choose the right legal
structure for a business:
The records and accounts that have to be kept
Tax and National Insurance
Liability faced by owners if a business fails
Sources of finance available to owners
The way that decisions are made
LO1) Understand why it is important to have the right legal structure and recognise
the sector they fit into.

5. Business Sectors
What do we mean by the
public and private
sector?
Can you think of any
examples of businesses
that fit in these sectors?
LO1) Understand why it is important to have the right legal structure and recognise
the sector they fit into.

6. Business Sectors
Can you put the correct type of Business ownership
in each sector?
PUBLIC SECTOR PRIVATE SECTOR
PARTNERSHIPS
GOVERNMENT SOLE TRADER
PRIVATE LIMITED (LTD)
PUBLIC LIMITED (PLC)
LO1) Understand why it is important to have the right legal structure and recognise
the sector they fit into.

7. What business sector?
LO1) Understand why it is important to have the right legal structure and recognise
the sector they fit into.

8. Over to you….
Research and prepare a presentation
based on one of the following forms of
ownership:
Sole Traders
Partnerships
Private Limited Companies
Public Limited Companies
Not-For-Profit Businesses
Prepare to present back to the rest of
the group.
LO2) Identity and explain the key features, benefits and drawbacks of various types of
business.

9. What type of ownership?
During feedback,
summarise key points
from your peer
presentations.
Be prepared to answer
questions.
LO2) Identity and explain the key features, benefits and drawbacks of various types of
business.

10. Why is the legal structure so
important?
Choose your perfect
home and car….
You own a business
and are looking into
different types of
business ownership….
LO2) Identity and explain the key features, benefits and drawbacks of various types of
business.

11. Limited and Unlimited Liability
Unlimited Liability Limited Liability
• The finances of a business are treated • The legal duty to pay debts run up by a
as inseparable from the finances of business stay with the business itself.
business owners.
• Courts can make a firm sell off assets.
• Personal assets can be seized by
creditors in order to meet outstanding • If insufficient funds then a firm can be
depts. forced to close down.
–
• If insufficient funds raised then the • Regarded as incorporated.
owner can be made bankrupt.
• Regarded as unincorporated.

12. Finally…..
Create a question based
on todays lesson.

13. Re-cap Learning Objectives
You should now be able to:
1. Understand why it is important to have the right legal
structure and recognise the sector they fit into.
2. Identity and explain the key features, benefits and
drawbacks of various types of business.
3. Evaluate the most appropriate business structure for
particular situations.