The Nature of Business and Ownership
There are many types of business ownership, below is information about four types of businesses that I have researched.
An example of a sole trader would be Amro, a hair salon. It offers beauty services such as haircuts, manicures, pedicures etc. A “sole trader” business is owned by one single person, although it may have a number of employees. There are no legal requirements for setting up as a sole trader and the owner does not even need to register with a government body. The majority of small businesses fall into this category. Amro is a small business and is on a local scale.
Public Ltd (plc)
An example of a plc would be Mercedes Benz, a car manufacturer. It produces and sells cars. Plc’s are usually well known to the public, they own large chains of shops or many factories. Mercedes Benz is a large business and is on an international scale.
Private Ltd (Ltd)
An example of an ltd would be Jungle Juice, a juice bar. It makes and sells juices, smoothies etc. An Ltd is a type of incorporated firm which offers limited liability to its shareholders but which places certain restrictions on its ownership. It can be owned by two or more shareholders and its owners are legally separate from the business. Since the company exists as an entity in law, it must therefore be registered as a legal enterprise. Jungle Juice is a small business and is on a local scale.
An example on a franchise would be McDonalds, which is a fast food chain. This is an extremely wide spread form of business operation. Franchisors are businesses with a product or service idea that it does not want to sell to consumers directly. It appoints franchisees to use the idea and sell it. McDonalds is a large business and is on an international scale.
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