The ownership of business

The ownership of business

Private Business

Sole Trader

This is a person who decides to set up the business on her/his behalf.

There mite be other people who work for the owner but the business to

be quite small, if, quite possibly, very profitable. An example is a

Chinese Takeaway or a Fish and chip shop.

Partnership

From 2 -20 people who get together to run a business. They will

probably employ other people to work for them. But ownership belongs

to the partners. A firm of solicitors ,architects or doctors is a good

example.

Private Limited Company ( PLC )

These companies may start as family running affairs and develop. The

reference to 'limited' means the extent to which owners are liable for

the financial affairs of the company if they owe money or crease

trading and have to pay off debts. If 1000 shares are available for

issues and Henry Smith has Three of them he is responsible for three

thousandths, 0.3%, of the debts the company owes. As a sole trader it

would have been 100% and as partner receives which makes the

proportion of liability for debts.

Public Limited companies

PLC or plc follows the trading name, as in Lloyds TSB plc. These tend

to be large organization which has shares in vast numbers. These

shares have value which quoted on the Stock Exchange.

Franchise

These are business run using the trading name of a much larger

company. For instance Body shop and Burger King

Public enterprises

Central government ...