Syllabus: AQA - GCSE Business
Module: Business in the Real World
Lesson: 3.1.2 Business Ownership

Introduction

This lesson focuses on AQA’s GCSE Business specification section 3.1.2: Business ownership, part of the broader unit “Business in the real world.” It’s all about helping students understand how different types of business structures operate—from sole traders to public limited companies—and why those choices matter. These are foundational ideas that underpin later topics like finance, growth, and stakeholder interests.

For teachers, it’s a great plug-and-play unit that links naturally to both real-world businesses and students’ own entrepreneurial ideas. This article gives you everything you need to teach it clearly, assess it confidently, and connect it meaningfully to life beyond school.

Key Concepts

AQA expects students to:

• Describe the main types of business ownership: sole trader, partnership, private limited company (Ltd), public limited company (plc), and not-for-profit organisations.

• Understand the characteristics, advantages, and disadvantages of each type.

• Identify why different business types are suitable for different situations, including new start-ups or growing businesses.

• Analyse how ownership type affects control, decision-making, and liability.

• Evaluate how ownership decisions influence long-term growth potential, funding, and risk.

Each concept builds toward students being able to choose appropriate ownership structures for hypothetical or real-world businesses, a skill that’s assessed in both structured and extended exam responses.

Real-World Relevance

Business ownership isn’t abstract—it’s visible on every high street and in every startup pitch. Here are some concrete teaching examples:

• A sole trader like a local mobile hairdresser—low start-up costs, full control, but unlimited liability.

• A small tech startup choosing Ltd status to attract investors without going public.

• Greggs PLC operating as a public limited company, balancing investor expectations with public scrutiny.

• Social enterprises like The Big Issue, which reinvest profits rather than prioritising shareholder returns.

Get students to spot these in their communities or in the news. Challenge them to think: Why did that business choose that structure? It’s a strong way to spark discussion and develop commercial awareness.

How It’s Assessed

This section appears frequently across Paper 1 of the AQA GCSE Business exam. Expect:

• Multiple choice questions (e.g. identifying characteristics of a business type).

• Short explain questions (e.g. two advantages of being a partnership).

• Application questions using case studies—students must recommend and justify the best ownership type for a business scenario.

• Extended writing (6 or 9 markers) where students weigh pros and cons and give supported conclusions.

Command words like “explain,” “analyse,” and “justify” are key. Make sure students know how to structure responses using connectives like “this means that…” or “as a result…”

Enterprise Skills Integration

This topic is naturally rich in enterprise thinking:

• Problem-solving: Which ownership structure best suits different business goals?

• Decision-making: Weighing trade-offs between control, liability, and funding.

• Risk management: Understanding how legal structure changes risk exposure.

Use tools like the Pitch Deck Analyser to simulate real-life decision-making—what ownership model would suit this business idea, and why?

Careers Links

Ownership structure affects real jobs:

• Sole traders (self-employed electricians, tutors, dog groomers) directly manage business decisions.

• Employees in Ltds and plcs often have clearer roles, HR departments, and career progression structures.

• Understanding how businesses are structured helps students spot where they might fit in, or how they might start something themselves.

This content supports Gatsby Benchmark 4 (linking curriculum learning to careers) and 5 (encounters with employers)—use guest speakers or local business case studies to reinforce it.

Teaching Notes

What works:

• Use comparison grids or Venn diagrams to help students visualise differences.

• Bring in guest speakers or short video case studies—local entrepreneurs or charity founders.

• Use the MarketScope AI tool to analyse how different industries favour different ownership types.

Common pitfalls:

• Students often mix up Ltd and plc—use clear examples and reinforce the idea of public vs. private share ownership.

• Some struggle to link ownership to real implications like access to finance or decision-making speed—scaffold this with “so what?” questioning strategies.

Extensions and scaffolds:

• Challenge higher ability students to consider ownership changes over time (e.g. start-up to scale-up).

• For SEND and EAL learners, use visual aids, sentence starters, and structured role-play activities to build understanding.