Types of Business Structures

Front

Sole Trader

Back

One person owns and runs the business. Example: Hairdresser, plumber, small shop owner. Purpose: To make a profit for themselves.

Front

Partnership

Back

Two or more people share ownership and responsibility. Example: Doctors’ surgery, accountants, small law firm. Purpose: To share profit and decision-making.

Front

Private Limited Company (Ltd)

Back

Business owned by shareholders (often family or friends). Example: Local construction company, design agency. Purpose: To make profit but with limited liability (owners are protected if the business fails).

Front

Public Limited Company (PLC)

Back

A large business where shares are sold to the public on the stock market. Example: Tesco, Apple, Nike. Purpose: To grow and make profit for shareholders.

Front

Franchise

Back

A business where someone buys the right to run a branch of an existing company. Example: McDonald’s, Subway, Costa Coffee. Purpose: To expand the brand and share profits with franchise owners.

Front

Charity / Non-profit Organisation

Back

Not run for profit – money raised goes to help people or causes. Example: Oxfam, British Heart Foundation. Purpose: To provide support or services, not to make profit.

Front

Public Sector Organisation

Back

Owned and run by the government. Example: NHS, schools, police. Purpose: To provide services for everyone, funded by taxes.

Front

Social Enterprise

Back

A business that trades to make money but reinvests profits into helping the community. Example: The Big Issue, community cafés. Purpose: To make money and create social good.