A list of the different types of Businesses.

Contents

• Sole Traders
• Partnerships
• Companies
• Franchises

Sole Traders

A sole trader is a business owned primarily by one person. Typical sole tradesmen professions include locksmiths, plumbers, electricians and similar.

Partnerships

Partnerships are businesses owned by two or more people. Partnerships are typically found in the professional services such as dentists, doctors, solicitors and accountants.

Companies

Companies are owned by shareholders who contribute a stock of money into a central pool. The shareholders receive a share of profits in the form of dividends. An example would be Boots or Sainsburys.

Franchises

A franchise is a form of licensing arrangement under which the right to trade under a brand-name in a locality is bought by an individual or group. The franchisee receives the benefit of the advertising, reputation and supply network of the larger group.

Image copyright Sprengben [why not get a friend]