IGCSE Business Studies: Chapter 1.4 Types of Business Organisations

IGCSE Business Studies: 1.4 Types of Business Organisations

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Timestamps

0:00 - Intro
0:14 - Business ownership
0:21 - Sole trader
1:43 - Partnership
2:48 - Franchise
3:44 - Joint venture
4:47 - Private limited company
5:55 - Public limited company
7:20 - Unincorporated business
7:56 - Incorporated business
8:30 - Public corporation
9:20 - Solved exam questions

In this video, I guide you through the various types of business organizations, focusing on their ownership structures and implications.

We start with sole traders, where one individual owns the business, enjoying full control and profits but facing unlimited liability, meaning personal assets are at risk if the business fails. Next, we explore partnerships, involving 2 to 20 owners who share profits and responsibilities, but may encounter conflicts and also face unlimited liability.

We then discuss franchises, where a franchisee operates under a franchisor's brand, benefiting from quicker expansion but risking reputational damage from poor decisions. Joint ventures consist of two or more businesses collaborating on a project, sharing expertise and costs, though disagreements can slow decision-making.

Moving on to private limited companies, which are owned by shareholders and have limited liability, we note they can only sell shares privately. Public limited companies can sell shares publicly, providing greater capital access but requiring transparency in financial reporting.

Finally, we discuss the public sector, where government-run corporations aim to provide essential services for societal benefit rather than profit. Each business type presents unique benefits and challenges, shaping how they operate in the economy.