Business - Business Sectors and Types

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Types

  • Not for profit
    • charity
    • public sector
  • Limited
    • Public (Plc.)
      • Limited liability
    • Private (Ltd.)
      • Limited liability
  • Sole Proprietor
    • 1 owner
    • sole trader
    • unlimited liability
  • Partnership
    • can be unlimited liability
    • limited liability partnerships
      • limited liability
    • limited partnerships
    • partnership
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Types: Franchise

  • Franchisor has no outgoing costs
  • Franchisor sells to another person
    • chose sole-partner etc. 
    • rights to use name and sell products or service is given
    • called franchisee
  • franchisee gives 20-30% of their profits
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Key Terms

  • Primary Sector- suppliers, produce raw materials
  • Secondary Sector - manufacturing and assembling
  • Tertiary Sector - refers to commercial services that support the production and distribution process
  • Public Sector - owned and run by government (e.g., NHS, police, army)
  • Private Sector - owned and run by private individuals (for-profit) (e.g., Tesco, Pets at Home, Pets Corner)
  • 3rd Sector - charities (not-for-profit) (non-governmental)(e.g., RSPCA, RSPB, Battersea Dogs and Cats Home, WWF, Blue Cross)
  • General Partner - responsible for the day to day running of the business
  • Limited Partners - fund the running of the business
  • Unlimited Liability - you and the businesses share the debt. They can tae your personal assets.
  • Limited Liability - only lose the money invested in the business, only lose the money of the business. 
  • Associated business - 2 businesses connected to each other
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Partnerships

  • All members in a partnership have unlimited liability and must inform HMRC and register as self-employed. 
  • Limited Liability Partnerships (LLP)
    • owned by at least 2 members
    • limited liability
    • business is its own legal entity
    • agreement to how the business is run
    • must register with Companies House
    • all partners are limited partners
  • Limited Partnership
    • general partner has control
    • limited partners have no active role
    • unlimited liability
    • not its own legal identity
    • must register with Comapnies House
    • Liability for Partnership's debts
    • Your responsibilities
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