Types of Business Ownership
The main ways a business can be owned: sole trader, partnership, private and public limited companies, and not-for-profit, plus the key idea of limited liability.
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Who owns a business? 🏢
Businesses can be owned in different ways, each with its own rules on control, finance, profit and risk. This module covers the main legal structures, from a sole trader with one owner to a public limited company with many shareholders, and the important idea of limited liability.
Words for ownership 🔑
Learn these four terms before you compare the structures.
Unlimited and limited liability 🆚
Liability decides how much an owner can lose if the business fails.
Grade 9 thinking 💡
To reach the top grades, choose the ownership type that fits the specific business, such as a sole trader for a small start-up or a plc for a large firm that needs lots of finance, rather than giving a generic comparison.
Match the structure to its description 🔗
- sole trader
- partnership
- private limited company
- not-for-profit
- one owner who keeps all the profit
- two or more owners who share the profit
- owned by shareholders, shares not sold to the public
- aims to help a cause and reinvests any surplus
Match the term to its meaning 🧩
- limited liability
- unlimited liability
- shareholder
- public limited company
- owners can only lose what they invested
- owners can lose personal possessions for debts
- a part-owner of a limited company
- a company whose shares are sold on the stock exchange
Which has one owner? ❓
Which type of business has just one owner?
- A sole trader.
- A partnership.
- A public limited company.
Limited liability ✅
Select the TWO types of business with limited liability.
- A private limited company.
- A public limited company.
- A sole trader.
- A partnership.
Order the growth 🪜
An interactive activity.
Summarise the structures 📝
A _____ trader has one owner with unlimited liability. A _____ has two or more owners. A private limited company is owned by _____ and has _____ liability. A public limited company sells its shares on the stock _____.
Count the owners 🔢
An interactive activity.
Spot the two with limited liability 🖍️
An interactive activity.
Which type of ownership? 🧭
An interactive activity.
Recommend a structure ✍️
An interactive activity.