Business Ownership Type
All business organisations need an owner. AFC @BeeBusinessBee is no different. The owner of the football club is typically called the chairman, however in some organisations this is known as the Managing Director (MD) or Chief Executive Officer (CEO). These are the people who make all of the decisions in the organisation and ultimately would be responsible if it failed.
There are many different types of ownership that you can choose when setting up an organisation.
- Sole Trader
- Private Limited Company (LTD)
- Public Limited Company (PLC)
AFC @BeeBusinessBee is going to be a Sole Trader and owned by Boris Bee. This is the easiest form of business ownership and Boris does not need to do anything special to set-up the business. In fact, he is going to have his office at his home until he finds a ground that the football club can use.
Being a Sole Trader means that Boris gets to make all of the decisions in the football club, however he can still employ people to work for him like a manager and players for the team. It also means that Boris can go on holiday when he likes and keep any profits that the football team makes. However this also means that when he is ill or wants to go on holiday he will have to trust that the business operates successfully without him. This could be more difficult if he was the owner and the team manager as the players would have no one to manage them!
As a Sole Trader he will also have unlimited liability. This means that Boris is personally responsible for all of the debts that AFC @BeeBusinessBee could run up. If the football club sold all its assets (things it owns) and still can't pay the full vaule of the debt back, then Boris could be forced to sell his personal assets to pay the debt back. This could mean him losing his personal savings, car, house etc. sold to cover the debts of his football club. This is why it is really important for Boris to ensure that he manages the football club successfully.