Sole traders, partnerships, limited companies, co-operatives, public corporations and multinationals, plus liability and the public/private sectors.
Goods and services are produced by businesses in the private sector (owned by individuals) and the public sector (owned by the government).
The private sector
Sole trader
One owner who keeps all the profit and makes all decisions. Easy to set up and flexible, but has unlimited liability (personal assets at risk) and limited finance.
Partnership
2–20 owners sharing capital, skills and profit. More finance and shared workload, but unlimited liability (in an ordinary partnership) and possible disagreements.
Private limited company (Ltd)
Owned by shareholders; shares sold privately. Has limited liability and is a separate legal entity, but shares cannot be sold to the public.
Public limited company (plc)
Shares sold to the public on a stock exchange. Can raise large capital and has limited liability, but faces more regulation and a risk of takeover.
Co-operative
Owned and run by its members (e.g. consumers or workers), who share profits as a dividend. Democratic ("one member, one vote") but may raise capital slowly.
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