Business – 1.2 Business structure – Business ownership | e-Consult
1.2 Business structure – Business ownership (1 questions)
Login to see all questions.
Click on a question to view the answer
| Feature | Public Limited Company (PLC) | Co‑operative | Franchise |
| Ownership structure | Shares listed on a stock exchange; owned by public shareholders. | Owned and democratically controlled by members (customers, workers or suppliers). | Independent franchisee owns the outlet; franchisor retains brand ownership. |
| Profit distribution | Dividends paid to shareholders according to shareholding. | Surplus distributed to members based on patronage or retained for development. | Franchisee retains profit after royalty and fees; franchisor receives royalties. |
| Regulatory obligations | Must comply with Companies Act, FCA rules, publish audited accounts, adhere to corporate governance codes. | Subject to cooperative legislation; must follow member‑by‑member voting and disclose financials to members. | Franchisor must comply with franchise legislation; franchisee follows franchisor’s operational standards and reporting. |