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Ownership structures
An ownership structure is like the blueprint of a company. It shows how the business is set up
and who calls the shots. For example, a sole proprietorship is when one person owns and runs
the business on their own. A partnership is when two or more people join forces and share
ownership. And a corporation is a larger entity with shareholders who own the company. Each
structure has its own perks and responsibilities!
Types of Ownership structures
Sole proprietorship; A highly uncomplicated and broadly available business structure is the sole
proprietorship, often the choice of individuals looking to initiate and manage a business or
businesses aligned with their personal preferences. In this arrangement, where there is no
distinct legal separations, the company effectively serves as an extension of the individual.
Consequently, the sole proprietor takes ownership of the business's assets and bears full
personal responsibility for all its debts and contractual commitments alone!
Advantages of sole proprietorship

 Easy and cheap to set up; Setting up your business won't require you to go through a lot
of tedious paperwork or shell out a lot of cash. It's an easy and economical approach.
 total authority over decision-making; You have the final say in every business decision
since you are the lone proprietor. You get to determine the course, make decisions, and
mold the company into what you envision.
 All earnings are paid to the owner in full; Since you are the only owner, you are entitled
to all business profits. They are not required to be shared with shareholders or partners.
Disadvantages of sole proprietorship

 One of the major drawbacks of being a single owner is that your personal assets may be
at stake if the firm has financial difficulties or legal problems. Unlimited personal
responsibility for business obligations. You are directly liable as the single proprietor for
any responsibilities or debts, which might be difficult at times.
  Limited access to finance and resources; Accessing money or resources may be more
difficult for small enterprises compared to bigger ones or those with several owners. A
sole proprietorship can face resistance from lenders or backers who want to provide
money or assist it.
 Full accountability for all areas of the company; as the lone entrepreneur, you'll have
several hats to wear. You'll need to manage all the operations, money, marketing, and
everything in between.

Partnership; A partnership is formed when two or more individuals come together to run a
business. Partners share the profits, losses, and decision-making responsibilities based on the
terms of their partnership agreement.
Advantages of partnerships;

 Shared responsibility and workload: When you have partners, you can divide the
responsibilities and tasks, making it easier to manage the business. It's like having a
team to support you!
 More resources and expertise: Each partner brings their own skills, knowledge, and
resources to the table. This can benefit the business by providing a wider range of
expertise and more resources to tap into.
 Shared decision-making: Partners can collaborate and make decisions together,
combining different perspectives and ideas. It can lead to better decision-making and a
more well-rounded approach.

Disadvantages of partnership;

 Shared profits and losses: The profits and losses of the business are divided among the
partners. This means that you may receive a smaller share of the profits compared to if
you were running the business on your own.
 Potential conflicts: Disagreements among partners can arise, just like in any relationship.
These conflicts may affect the smooth operation of the business and require open
communication and conflict resolution skills.
 Joint liability: Each partner is personally liable for the business's debts and obligations.
This means that if the business faces financial difficulties or legal issues, your personal
assets could be at risk.

Corporation; A corporation is a legal entity separate from its owners. It is owned by

shareholders who elect a board of directors to make major decisions. Shareholders have limited
liability, meaning their personal assets are generally protected.
Advantages of a corporation:

 Limited liability: Your personal assets are generally protected.

 Capital raising: You can sell shares of stock to raise funds.
 Continuity: The business can exist beyond the lifespan of its founders.
Disadvantages of a corporation:

 Complexity: There are more legal and administrative requirements to fulfill.

 Double taxation: Profits are taxed at the corporate level and again when distributed to
shareholders.
 Decision-making: Involvement of multiple stakeholders can sometimes slow down the
decision-making process.

Limited Liability Company (LLC): An LLC combines the limited liability protection of a
corporation with the flexibility and tax benefits of a partnership. Owners are called members
and have the freedom to choose how the business is managed and taxed.
Advantages of an LLC;

 Limited liability: Your personal assets are generally protected.

 Flexible management and taxation: You have the freedom to choose how the business is
managed and taxed.
 Simplicity: There are fewer legal and administrative requirements compared to a
corporation.

Disadvantages of an LLC:

 Self-employment taxes: LLC owners may be subject to self-employment taxes.

 Limited life span: In some jurisdictions, an LLC may have a limited existence.
 Limited fundraising options: It may be more challenging to raise capital compared to a
corporation.

Cooperative: A cooperative is owned and operated by a group of individuals or businesses who

work together to meet shared needs or goals. Each member has an equal say in decision-
making and typically shares in the profits.
Advantages of a cooperative:

 Shared decision-making: Members have a say in the business's operations and direction.
 Equal ownership: Each member has an equal stake and voice in the cooperative.
 Cooperative values: Cooperation, community, and mutual support are emphasized.
Disadvantages of a cooperative:

 Potential conflicts: Decision-making can be slower due to the need for consensus.
 Limited access to capital: It may be more challenging to raise funds compared to other
structures.
 Limited growth potential: Expanding the cooperative's size and scope can be more
difficult.

According to my research, each ownership structure has its own set of advantages and
disadvantages, so it's critical for businesses to select the one that best fits their objectives and
circumstances.

The sectors of a business Activity

All businesses can be categorized based on the stages of production in which they operate.
These stages are;
1. Primary Sector: This sector involves activities related to natural resources, such as farming,
fishing, mining, and forestry. It's all about extracting raw materials from the Earth.
2. Secondary Sector: In this sector, raw materials from the primary sector are transformed into
finished products. Think of manufacturing, construction, and industrial activities. It's where the
magic happens to turn raw materials into tangible goods.
3. Tertiary Sector: The tertiary sector is all about services. It includes businesses that provide
services to individuals and other businesses, like banking, retail, healthcare, education, and
tourism. This sector is focused on meeting the needs and wants of people.
4. Quaternary Sector: The quaternary sector involves knowledge-based activities. It includes
intellectual services like research, development, information technology, consultancy, and
innovation. This sector is all about creating and sharing knowledge.
I believe these sectors work together to drive economic growth and provide goods and services
to society. Each sector plays a vital role in the overall business ecosystem.

The scope of a business

The scope of a business refers to the scale at which the business exists and operates, they can
be broken down into local, national and international scopes.
1. Local Scope: This is when a business operates within a specific area, like a neighborhood or
city. For example, a local bakery that sells delicious pastries to the people in their community.
2. National Scope: This refers to businesses that operate within a country. An example could be
a national retail chain with stores all across the country, serving customers from different
regions.
3. International Scope: Now we're thinking big! International businesses operate across
multiple countries. Think of global brands like Coca-Cola or McDonald's, with operations and
customers in various parts of the world.
These different scopes determine the reach and impact of a business.

Sizes of businesses
The size of a business is basically the number of employees the business has. There are four
different sizes of businesses, each with its own characteristics. Here they are:
1. Microbusiness: These are small-scale businesses with very few employees, often just one or a
handful. Examples include freelancers, independent consultants, or a local food truck run by a
small team.
2. Small Business: These businesses have more employees and a slightly larger scale of
operations. They could be a family-owned restaurant, a boutique clothing store, or a local
plumbing company with a team of technicians.
3. Medium-sized Business: These businesses have a more significant number of employees and
a broader scope of operations. Examples could be a regional chain of supermarkets, a
manufacturing company with multiple production facilities, or a software development firm
with a sizable team.
4. Large Business: These are the big players in the business world, often multinational
corporations with thousands of employees and extensive operations. Think of global tech giants
like Apple or Google, automobile manufacturers like Toyota or Volkswagen, or retail giants like
Walmart.
Each size of business comes with its own advantages and challenges and can be rewarding or
detrimental in the long run .

Business 1:
Name of business: KFC
Features of KFC
KFC is a fast-food restaurant chain that specializes in fried chicken. They offer a variety of
chicken-based products like their signature Original Recipe chicken, crispy chicken sandwiches,
chicken tenders, and delicious sides like mashed potatoes and coleslaw. One unique
characteristic of KFC is their secret blend of 11 herbs and spices, which gives their chicken its
distinct and flavorful taste.

Ownership and liability

Ownership
KFC operates as a corporate business, which means it is owned and operated by a larger
company called Yum! Brands. Yum! Brands is a multinational corporation that owns and
manages various fast-food chains, including KFC, Taco Bell, and Pizza Hut. As a corporate entity,
Yum! Brands oversees the operations and management of these different restaurant brands.
This allows for centralized decision-making and resource allocation across the company.
Liability
So, when it comes to the liability of the owners of KFC, being a corporate business means that
the owners, in this case, Yum! Brands, have limited liability. This means that if any legal issues
or debts come up, their personal assets are generally protected. It's like a safety net that
separates their personal finances from the business. So, they have some protection in case
things go bad.

Purpose
The purpose of KFC is to provide delicious fast-food products and services to customers. They
aim to satisfy people's cravings for their famous fried chicken and other tasty menu items. Now,
let's talk about the difference between for-profit and not-for-profit businesses. My research
indicates that a for-profit business, like KFC, is primarily focused on making money and
generating profits for its owners or shareholders. On the other hand, a not-for-profit business,
as the name suggests, is driven by a mission or cause and any surplus funds are reinvested back
into the organization to further their goals, rather than being distributed to owners or
shareholders. KFC falls under the category of a for-profit business since its main objective is to
generate profits.

Sector
1. Industry/sector
KFC operates in the fast-food industry, specifically in the sector of quick-service restaurants.
They're known for their tasty fried chicken and other mouthwatering menu options.
 2. Scope of KFC
They have a widespread presence with their restaurants operating in numerous countries
around the world, making them an international business. So, no matter where you are, you
can usually find a KFC nearby to satisfy your cravings for their tasty fried chicken. Their scope
extends far and wide!

Size of KFC
KFC has a pretty large workforce; they employ tens of thousands of people across their global
network of restaurants.

Reasons for the success of KFC

There are several factors that contribute to the success of KFC. First, their commitment to
innovation sets them apart. From introducing new menu items to exploring different cooking
techniques, KFC keeps things fresh and exciting for their customers.
Strong leadership is also crucial. KFC has had visionary leaders who steer the company in the
right direction, ensuring its growth and success. Effective marketing plays a big role too. KFC
knows how to capture attention with their catchy ads and campaigns, making sure people crave
their “finger-lickin'” chicken. What sets KFC apart from other for-profit businesses is their clear
vision and objectives. They strive to provide delicious food and exceptional customer service
while maintaining their unique identity.
Innovation is also a key focus, as they continuously explore new flavors and cooking methods
to keep customers coming back for more. In a nutshell, KFC aims to be a leader in the fast-food
industry, providing tasty and satisfying meals while staying true to their roots. They're all about
delivering that “finger-lickin'” good experience to their customers!

Business 2:

Name of business: Red cross

Features of Red Cross;
The Red Cross is a global humanitarian organization known for its response to disasters, blood
donation initiatives, and the promotion of health and safety training. An exceptional feature
that sets them apart is their emblem: a red cross against a white backdrop, universally
acknowledged as an emblem of assistance and optimism.
Ownership and liability
Ownership
In terms of ownership structure, the Red Cross is actually a distinctive organisation. Since it is a
non-profit organisation, it has no traditional owners in the sense of shareholders or individuals.
Instead, it is run by a board of directors who are in charge of managing its affairs and making
crucial choices. To carry out its humanitarian mission, the Red Cross depends on the assistance
of volunteers, donations, and government financing. You may therefore argue that those who
support the Red Cross's cause and who believe in its goals are in a sense its owners.
Liability
The Red Cross doesn't have typical owners with personal liability because it is a non-profit
organisation. The organisation itself is typically the only party liable. The management team
and board of directors, for example, are not held personally liable for the debts or legal
responsibilities of the organisation. Therefore, it may be said that the Red Cross's owners have
a limited liability. It serves to safeguard them and promote their commitment to doing good
deeds!

Purpose
The great mission of the Red Cross is to provide aid to individuals in need. They offer a variety
of crucial services like blood donations, emergency aid, and training in health and safety. There
are currently two primary categories of businesses: for-profit and non-profit. While not-for-
profit organisations like the Red Cross concentrate on performing good deeds for the
community without having a primary focus on making money, for-profit enterprises are all
about creating money and reaping those gains. Therefore, the Red Cross is a nonprofit group
that is dedicated to having a beneficial impact and aiding others.

Sector
Industry of the Red Cross
The Red Cross is in the humanitarian industry. They're all about providing assistance and
support to those in need, whether it's during times of disaster, through blood donations, or by
offering health and safety training. They're dedicated to making a positive impact and helping
people in their time of need.
Scope of the Red cross
The Red Cross has a pretty extensive reach, working both within our country's borders and on
the global stage. They're active in the humanitarian field, lending a hand and offering help in a
bunch of areas, from disaster relief and blood donations to health and safety training. Their
main focus is on creating a positive influence and assisting folks who require it, regardless of
their location.

Size of employees(employees)
The organized International Red Cross and Red Crescent Movement is a humanitarian
movement with approximately 16 million volunteers, members and staff worldwide. It was
founded to protect human life and health The Red Cross is quite a large organization, and
they've got a bunch of employees on their team. This crew is a mix of all sorts of people who
are super committed to teaming up and offering help to those who could use it. It's pretty
amazing how they bring all these people together to create a positive ripple in communities
worldwide!

Reasons for the success of Red Cross

The Red Cross owes its remarkable success to a mix of crucial elements. One of their standout
features is their unwavering commitment to a clear mission centered on extending compassion
to those in need. What truly makes them unique is their tireless drive to explore innovative
approaches in offering support and creating a palpable, positive impact in the lives of those
they serve. But here's what genuinely differentiates them: the Red Cross isn't guided by profit
motives like many businesses. Instead, their core mission is deeply rooted in caring for the well-
being of others, with the ultimate goal of making the world a better place for everyone.
So, what's on their agenda? It's filled with inspiring endeavors. They're right there at the
forefront when disasters strike, offering both assistance and comfort. They're dedicated to
raising awareness about health and safety, ensuring that people are well-prepared to stay
secure. And let's not forget their humanitarian services; they're like real-life champions of
kindness, always prepared to step in and create a profoundly positive impact. In summary, the
Red Cross isn't just an organization; it's a movement of committed individuals united by a
mission to bring hope and support to those who need it most.

KFC
Owners of KFC and their influence and effect on the business
The owners of KFC, which is a part of Yum! Brands, have a major influence on the business
decisions, activities and anything else regarding KFC. They have the power to shape the
direction of the company and make important choices that impact everything from little
changes such as the menu KFC uses to the more complex marketing strategies. Their vision and
involvement play a crucial role in determining the success of KFC and so far they seem to be
doing good for themselves. They work closely with the management team to ensure that the
brand stays true to its values and continues to provide delicious food and great experiences to
customers like you and me and any other person that likes their food. Their dedication and
passion for the business drive innovation and growth.

How KFC influences their business’ success and what happens when they don’t meet their
requirements
KFC is successful because it created an authentic brand with a memorable name and specific
recipes so customers could always expect high-quality food when they visit one of their
restaurants. KFC knows how to bring the flavor and make their business soar. They're all about
“finger-licking" good food, catchy marketing, and satisfying customer experiences. By
constantly innovating their menu, expanding their reach, and staying true to their unique
brand, KFC keeps customers coming back for more. I think it's their secret recipe for success!
When KFC fails to meet their requirements, it can cause some problems. For example, failing to
deliver on quality or customer service can result in dissatisfied customers and negative reviews.
This can harm their reputation and, as a result, reduce sales. To overcome these obstacles, KFC
must listen to its customers, address any issues as soon as possible, and make improvements to
meet and exceed expectations. They can maintain their success and keep their good reputation
by doing so! Moreoever, employees may also be affected. For example, a drop in sales or
unfavourable customer feedback could have an influence on employee morale and job security.
It is critical for KFC to handle any issues and support their staff during difficult times.

Red Cross
Owners of Red Cross and their influence and effect on the business
After doing some extensive research, ive concluded that the Red Cross doesn't have traditional
owners like a regular business. Instead, it's a nonprofit organization guided by a board of
directors. These directors, along with passionate volunteers, have a big say in the organization's
decisions and activities. They provide strategic direction, oversee finances, and make sure the
Red Cross fulfills its mission of helping people in need. Their dedication and expertise are what
drive the Red Cross's impact and make a positive difference in the world.

How the Red Cross influences their business’ success and what happens when they don’t meet
their requirements
Well, while the Red Cross doesn't fit the conventional business model, their success hinges on
several vital factors. Their standing in the community and the unwavering support from
volunteers and donors are very vital. If they manage to not meet their objectives, it can hinder
their capacity to deliver aid and assistance to those who require it. Their staff members are
incredibly dedicated, working tirelessly to assist others. Falling short of their goals could also
affect their ability to provide resources and support to these committed employees. Ensuring
that the Red Cross meets its targets is crucial to sustaining their mission of making a positive
impact in the world.