Legal Structures

Tell me three things...

about the topic we are studying.

Or,

you learnt in the last lesson.

STARTER

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.

e.g. Communication is like driving because…

Private Sector

Unincorporated Incorporated

Sole Trader Private Ltd Company

Partnership Public Limited Company

Sole Trader

Easy, quick and cheap to set upAbsolute controlFlexibleButOnly one source of financeUnlimited liabilityLimited lifespanHigh degree of risk and responsibility

Partnerships

Quick and cheap to set upMultiple sources of financeShared responsibilityAdditional skills availableButMay result in compromise and conflictUnlimited liabilityProfits sharedLimited lifespan

Forming a Limited Company

The process of Incorporation:Registration with the Registrar of Companies

Memorandum of Association – name, purpose, size, etc.

Article of Association – internal management structure, rights of shareholders, etc.

The business becomes a separate legal entity with its own legal ‘personality’

Risk is limited to the amount of money invested

Private Limited Company

Multiple sources of financeLimited liabilityFormal decision-making structureButPotential loss of controlSet-up costsAuditing and AGM requiredCorporation tax to pay

Conversion to a plchttp://news.bbc.co.uk/1/hi/business/3913351.stm

Private Limited companies with share capital of more than £50,000 can convert

Companies are ‘floated’ on the stock market

Any member of the public can buy sharesThis opens up new sources of finance for

further expansionFloatation can be an expensive process

Public Limited Companies

Unlimited sources of finance

ButHigh set-up costsAuditing & publication of accounts requiredCorporation tax to payLoss of control (takeover threat)Likely to become highly focussed on short-term

profitDivorce of ownership and control

Factors Affecting Choice of Structure

Ownership & ControlLiabilityImageObjectivesCost

SetupAdministrationTaxation

Other Legal Structures?

http://www.co-operative.coop/join-the-revolution/story-of-the-revolution/

Alternative Structures

Cooperative

Public Ownership

Not-for-profit organisations:MutualsCharitiesTrusts

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.

PLENAPLENARY 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 Spell a key word to your friend to your friend

using sign using sign language… language…

Exam Question

Write an exam question based on your learning today. Then, swap books Write an exam question based on your learning today. Then, swap books and answer someone else’s question.and answer someone else’s question.

Answer PLAN: Intro – define key word Explain 1 advantage (BLT) Explain 1 disadvantage (BLT) Conclude – I think, however, it depends…

E.g. Discuss whether a bank loan is suitable for business startup .

Start with; Discuss or Evaluate whether or To what extent is _______________________________________________________________________________________________________________________________________ (6m)

3+ connectives 3+ key words