13659742
Types of
business
ownership
- Sole trader
- 1 owner
- Small size
- Unlimited liability
- 1 owner
- Partnership
- Requires a deed of partnership
- Unlimited liability
- Owned by 2-20 people
(called partners)
- Small to
medium
size
- Requires a deed of partnership
- Private
limited
company
- Owned by shareholders who
can only be family/friends
- Controlled by a
board of directors
- Limited liability
- Medium to
large size
- Owned by shareholders who
can only be family/friends
- Public limited company
- Limited liability
- Controlled
by a board
of directors
- Large to extra large size
- Profit paid to shareholders in dividends
- Shares can be bought
and sold on stock
exchange
- Limited liability
- Franchise
- An arrangement in which a
business can trade in the same
style as an existing business
- Franchisee must buy franchise from franchisor
- Usually a % of sales must be
paid to franchisor called
'royalty'
- An arrangement in which a
business can trade in the same
style as an existing business
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