Legal Structures Tell me three things

Legal Structures

Tell me three things. . . STARTE about the topic we are studying. R Or, you learnt in the last lesson.

Questions you would like to ask Today we will begin studying ______. What are the questions you would like answered.

Noun Play _____ is like (a) ____ because…. First blank is for the topic, concept etc. Second blank is for the random noun.

Private Sector Unincorporated Sole Trader Partnership Incorporated Private Ltd Company Public Limited Company

Sole Trader l Easy, quick and cheap to set up l Absolute control l Flexible But l Only one source of finance l Unlimited liability l Limited lifespan l High degree of risk and responsibility

Partnerships l Quick and cheap to set up l Multiple sources of finance l Shared responsibility l Additional skills available But l May result in compromise and conflict l Unlimited liability l Profits shared l Limited lifespan

Forming a Limited Company The process of Incorporation: l Registration with the Registrar of Companies ¡Memorandum of Association – name, purpose, size, etc. ¡Article of Association – internal management structure, rights of shareholders, etc. l The business becomes a separate legal entity with its own legal ‘personality’ l Risk is limited to the amount of money invested

Private Limited Company l Multiple sources of finance l Limited liability l Formal decision-making structure But l Potential loss of control l Set-up costs l Auditing and AGM required l Corporation tax to pay

Conversion to a plc http: //news. bbc. co. uk/1/hi/business/3913351. stm l Private Limited companies with share capital of more than £ 50, 000 can convert l Companies are ‘floated’ on the stock market l Any member of the public can buy shares l This opens up new sources of finance for further expansion l Floatation can be an expensive process

Public Limited Companies l Unlimited sources of finance But l High set-up costs l Auditing & publication of accounts required l Corporation tax to pay l Loss of control (takeover threat) l Likely to become highly focussed on short-term profit l Divorce of ownership and control

Factors Affecting Choice of Structure l Ownership & Control l Liability l Image l Objectives l Cost ¡Setup ¡Administration ¡Taxation

Other Legal Structures? http: //www. co-operative. coop/join-the-revolution/story-of-the-revolution/

Alternative Structures l Cooperative l Public Ownership l Not-for-profit organisations: ¡Mutuals ¡Charities ¡Trusts

Questions you would like to ask e. g. Today we have been studying________. Think of 1 questions to ask other people in the class about today’s lesson. PLENA RY

Freeze Frame Students have to produce a freeze-frame showing one aspect of their learning. E. G. A communication method or a finance or a sector of the economy

Spell a key word to your friend using sign language…

Exam Question loan is suitable for business E. g. Discuss whether a bank startup. 3+ connectives 3+ key words Start with; Discuss or Evaluate whether or To what extent is _________________________________________________ (6 m) swap books Write an exam question based on your learning today. Then, and answer someone else’s question. ü ü ü Answer PLAN: Intro – define key word Explain 1 advantage (BLT) Explain 1 disadvantage (BLT) Conclude – I think, however, it depends…