Ownership
Owning Your Own Restaurant
Case Study
Miles Smith has been working at a top London restaurant since he left college 10 years ago and has progressed up through the ranks to become a respected and popular head chef. Miles always dreamt of being a chef and although he has few other formal or academic qualifications he has always met with great success and encouragement with his cooking. Miles also has an entrepreneurial side and another ambition has been to own his own restaurant but he has always worried that there would be much more to it than just being a good chef. Miles has discussed his intentions with his wife, Cheryl, who works as a customer service advisor for a national high street bank. Miles believes that he has many of the creative skills and the passion for running his own business but knows that he will be lacking in many other areas. Over the last 10 years Miles has made accumulated reasonable savings but after discussion with Cheryl he is not sure how far these will go in terms of running his own business. After recently identifying several possible locations Miles had a meeting with a small business advisor to outline his initial intentions. One of the matters the advisor recommended Miles consider in detail was the legal ownership status he was going to adopt for his restaurant.

Answer 1: You have decided to answer the question with Sole Trader
Define term: Give a thorough explanation of the term Sole Trader
Contextual analysis Point 1:
Fully explain a benefit of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context
Contextual analysis Point 2:
Fully explain a benefit of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context
Justification: Make your choice clear and explain why by doing some of the following:
 prioritising your analytical points
 emphasising the appropriateness given the scenario and case study
 briefly discuss why you chose this over other alternatives
 Consider what other factors may determine whether your choice is effective or not.
Contextual analysis Point 3:
Fully explain a drawback of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context

Answer 2: You have decided to answer the question with Partnership
Define term: Give a thorough explanation of the term Partnership
Contextual analysis Point 1:
Fully explain a benefit of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context
Contextual analysis Point 2:
Fully explain a benefit of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context
Justification: Make your choice clear and explain why by doing some of the following:
 prioritising your analytical points
 emphasising the appropriateness given the scenario and case study
 briefly discuss why you chose this over other alternatives
 Consider what other factors may determine whether your choice is effective or not.
Contextual analysis Point 3:
Fully explain a drawback of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context

Answer 3: You have decided to answer the question with Private Limited Company (Ltd)
Define term: Give a thorough explanation of the term Private Limited Company
Contextual analysis Point 1:
Fully explain a benefit of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context
Contextual analysis Point 2:
Fully explain a benefit of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context
Contextual analysis Point 3:
Fully explain a drawback of this form of ownership
Make sure this is developed as to how this affects the business and scenario outlined in the case study
Consider the full ramifications as to whether this may lead to other positive or negative impacts again in context
Justification: Make your choice clear and explain why by doing some of the following:
 prioritising your analytical points
 emphasising the appropriateness given the scenario and case study
 briefly discuss why you chose this over other alternatives
 Consider what other factors may determine whether your choice is effective or not.