How Businesses Operate

How Businesses Operate
Task 1 & Task 5

AC 1.1 Types of
organisations in UK
Business organisation refers to
an individual or a group of
persons working together to
achieve the same commercial
interest.
Organisation
Types
Sole
Proprietorshi
p
Partnership
FranchiseePrivate Sector
Public Sector

Cont.
 Sole Proprietorship : Sole proprietorship refers to that business owned by only one
person.
 Partnership : Business owned by two or more persons is known as partnership. Partners
contributes resources, capital, skills and workloads.
 Franchisee : Licensing arrangements where an individual or group buy the right to sell
or produce under a well known brand.
 Private sector : It is an business enterprise which is run by the private individuals or
groups.
 Public sector : An organisation owned and operated by the government.

Basis Sole
Proprietorship
Partnership Franchisee Private
Company
Public
company
Owner One owner 2 or more
partners
franchisee Shareholders Shareholders
and
government
Size small medium Small part of
large
organisation
Medium and
large
large
Liability Unlimited Mostly
unlimited
Limited Limited Limited
Profit
sharing
Owner Partners Franchisee and
Franchisor
Shareholders Shareholders