Syllabus: WJEC - GCSE Business
Module: 1. Business Activity
Lesson: 1.6 Business Ownership

Introduction

This lesson supports WJEC GCSE Business, specifically section 1.6 of the specification: Business ownership. It introduces learners to the main types of business ownership, helping them understand how ownership structures affect control, liability, decision-making, and growth potential. It’s foundational knowledge, essential for analysing business strategy later in the course.

Teaching this section effectively helps students navigate core ideas like limited vs unlimited liability and private vs public ownership. It also sets them up to make more informed decisions in extended response questions.

Key Concepts

According to the WJEC GCSE Business specification, learners need to understand:

• The different types of business ownership:

  • Sole traders

  • Partnerships

  • Private limited companies (Ltd)

  • Public limited companies (plc)

  • Not-for-profit organisations (e.g. charities, social enterprises)

• The advantages and disadvantages of each type, including:

  • Levels of liability (limited or unlimited)

  • Access to finance

  • Decision-making control

  • Legal and administrative responsibilities

  • Impacts on business growth and stakeholder involvement

• The reasons businesses choose specific ownership structures and how this may change as they grow

Students should also be able to link ownership types to real businesses and assess how ownership affects decision-making and performance.

Real-World Relevance

Ownership decisions shape businesses every day. For instance:

• Greggs started as a family bakery and is now a publicly traded plc, enabling it to expand nationally.

• Gymshark, founded by a teenager in his garage, began as a sole trader before converting to a limited company to access more funding and limit liability.

• The Eden Project operates as a not-for-profit with social goals, reinvesting profits into education and conservation.

These examples highlight the link between ownership type, ambition, and the ability to scale or support a mission. Students should be encouraged to research local businesses to see these ownership types in action.

How It’s Assessed

This topic is tested across both WJEC exam papers (Unit 1 and Unit 2). Question styles include:

• Multiple-choice questions testing key terms (e.g. “What is a partnership?”)

• Short-answer questions requiring advantages/disadvantages (e.g. “State two benefits of being a sole trader”)

• Application questions using case study prompts to evaluate ownership decisions

• Extended responses where students argue which type of ownership suits a given business context

Key command words include describe, explain, analyse, and evaluate. Practising past paper questions that involve justifying ownership choices is essential preparation.

Enterprise Skills Integration

Ownership structures tie directly into enterprise skills like:

• Decision-making: Choosing the right legal form requires weighing risk, control, and finance.

• Problem-solving: If a business needs funding or wants to grow, ownership change might be a solution.

• Risk-taking: Sole traders take on personal risk for business rewards.

• Financial literacy: Understanding liability and finance sources in different structures improves commercial awareness.

Using practical role-play or simulation (e.g. “Set up your own business” scenario) brings this alive and helps students understand consequences firsthand.

Careers Links

This topic links well with:

• Gatsby Benchmark 4 & 5: Showing how classroom content connects to real businesses and job roles.

• Relevant career paths:

  • Entrepreneur or business owner

  • Accountant (advising on structures and tax)

  • Legal services (business formation and liability)

  • Charity management (not-for-profits)

Highlighting how business ownership knowledge supports self-employment, management, or advisory roles helps students see the wider value beyond exams.

Teaching Notes

• Common pitfalls: Students often confuse private and public limited companies or assume all partnerships are informal. Use clear case studies and flowcharts.

• Quick wins: Create a comparison table activity to drill home key differences. Great for visual learners.

• Differentiation: Use tiered tasks—match key features to business types for support, or ask higher-ability students to evaluate ownership decisions in unfamiliar contexts.

• Extension: Invite a local business owner to discuss why they chose their ownership model, or run a mock “Dragons’ Den” where students pitch and defend a business idea and ownership type.

• Cross-topic links: Ownership decisions affect finance, HR, and marketing strategy, so keep prompting students to see the connections.