SLIDES ON AUTHENTIC ACTIVITY

1. BUSINESS STUDIES
GRADE : 10
TERM 2
TOPIC 4: FORMS OF OWNERSHIP

2. RESOUESES USED
• PRESENTAION
• SLIDES
• MINDMAPS
• PICTURES

3. 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

7. 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.

8. Private vs public
Private:
• 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 company
Public:
• 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

9. 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

11. 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)