International GCSE Accounting
1 Types of Business
Organisations
Look at the pictures and answer the questions
Questions
1. What type of business organisations
do you know?
2. What makes them different from each
other?
At the end of this lesson, you will be able to…
● explain the characteristics of:
■ public sector organisations
■ private sector organisations
■ sole traders
■ Partnerships.
● understand the importance of limited and unlimited liability
● understand and explain the relationship between stakeholders
and a business.
Business Ownership
Business Ownership
Public Sector Private Sector
Public Sector
Unlimited liability Limited liability
Organisations
● Private Limited
● Sole Trader
Company
● Partnership
● Public Limited
Company
Unlimited Liability
new business
invests $10,000
debts of $50,000
owner to pay back Cannot
debts pay
back
debts
Read the definition and type the word/phrase
sole trader partnership unlimited liability
bankrupt capital deed of partnership
1 two or more (up to 20) individual who a business.
2 full responsibility for debts of the business.
3 money invested in the business by the owner(s)
4 a formal agreement to begin a partnership
5 when someone cannot pay their outstanding debts
6 an individual who owns his or her own business.
Sole Trader
● One owner
● Tends to be small business - barber, handyman
What are the advantages of being What are the disadvantages?
a sole trader?
● All the responsibility is on one
● Easy to set up person.
● Keep all the profits ● Unlimited liability
● Full control ● Lack of capital
● Easy to make decisions (quick) ● Lack of business continuity
Partnership
● Two or more owners
● Tend to be small, with few employees - lawyers,
accountants, doctors
Disadvantages
What are the advantages of being in a
● Unlimited liability
partnership?
● Lack of business continuity
● Easy to set up → partnership
agreement ● Shared decision-making and risks
● Can share workload ● Need to share profits
● More capital available ● May not agree on everything
● Increased skills and knowledge ● Difficult to get financing
Study the vocabulary and phrases in Quizlet
8 min
Complete the following exercises on
Quizlet:
● Flashcards
● Learn
Look at these company logos and answer the questions
Questions
1. Which of these companies do your
recognise? What do they do?
2. What makes the ones on the left
different from the ones on the right?
(Draw up a Venn Diagram)
3. In which of these companies can you
buy shares on a stock exchange?
Private vs Public Limited Companies
Case Study 1: The Local Bakery
Emily owns a small bakery in her neighborhood. She runs the business on her own,
managing everything from baking the bread to handling the finances. All the profits
go to her, and she is personally responsible for any debts the bakery might have.
What type of business organization is Emily's bakery?
Case Study 2: The Law Firm
James and Rachel are both lawyers who started their own law firm together. They
share the profits and the responsibility of running the business. They also share any
losses or debts equally, and both are fully liable for the firm’s debts.
What type of business organization is this law firm?
Case Study 3: Tech Start-Up Ltd
Tech Innovators Ltd is a new company started by three friends. They each invested
money into the business and own shares in the company. Their personal assets are
protected, so if the company faces financial trouble, they only lose the money they
invested.
What type of business organization is Tech Innovators Ltd?
Case Study 4: Global Soft Drinks Co.
Global Drinks PLC is a large company that sells its shares to the public on the stock
market. Anyone can buy shares and become a part-owner of the company. The
company is run by a board of directors, and shareholders vote on major decisions.
What type of business organization is Global Drinks PLC?
Case Study 5: The National Health Service
The National Health Service (NHS) in the UK is a healthcare system funded by the
government. It provides free medical services to the public and is not run for profit.
The government uses taxpayers' money to run the organization, and its primary goal
is to ensure public health and welfare, rather than making money.
What type of business organization is the NHS?
Complete the Kahoot quiz
Look at the picture and answer the questions
Questions
1. What does the word ‘stakeholder’ refer
to?
2. What is the difference between a
‘stakeholder’ and a ‘shareholder’?
Match the objective with the stakeholder
customers suppliers employees
government community owners
1 want to be paid on time for good and services delivered.
2 want taxes to be paid and jobs to be created.
3 want job security and a good working environment.
4 do not want harm to local environment and jobs for locals
5 want a return on their capital invested into the business.
6 want quality products at a fair price.
Stakeholders
external internal
● Good quality goods (reliable and safe)
customers ● Fair price
shareholders
● Paid on time
suppliers ● entitled to a rate of return on the
capital they have invested
● growth
● Offer jobs to local employees
community ● Not harm the environment
● Socially responsible products
managers employees
● Wants business to grow → increase tax
government revenue and job creation
● Adhere to rules and regulations ● Regular payment for work performed
● Job security
● Good working environment
● Repayment of loans and interest on
lenders time
● liquidity
Look at the statements and answer the questions
Questions
1. Who are the key stakeholders that will
be affected by the action of the
business?
2. What are the positive or negative
effects for these stakeholders?
Look at the statements and answer the questions
Questions
1. Who are the key stakeholders that will
be affected by the action of the
business?
2. What are the positive or negative
effects for these stakeholders?
Now, can you…
● explain the characteristics of:
■ public sector organisations
■ private sector organisations
■ sole traders
■ Partnerships.
● understand the importance of limited and unlimited liability
● understand and explain the relationship between stakeholders
and a business.
