Forms of Business Ownership

Often doctors, dentists and solicitors go into partnership to share expertise and costs.

A disadvantage to being in a partnership is shared responsibility and disputes can arise about how the business is run.

Sole traders operate their business on their own, but can still hire people like plumbers etc.

They have no seperate legal identity to the business, so are personally liable. 

These are easy to set up but have long hours and lots of responsibility, as well as unlimitied liability. 

These have their own legal identity and so limited liability.

Can raise capital by selling shares, but not as much as a plc. 

Plcs are very similar to Ltds, except they can quote their shares in stock exchanges and raise much more capital through selling shares and are often bigger. 

A franchise is a buisness model/idea.

A franchisor will sell this already sucessful idea to a franchisee who in turn gets equipment training brand name and products.

Being a franchisee is a low risk option as the business model is already proven to work and also has less responsibility, but less control over how your business is run at the same time.