Types of business

The different types of business organization to be found in the UK and most other capitalist countries may be classified under five headings: the sole proprietor, the partnership, the joint stock company, the cooperative society, and the public corporation.

Types of organization	Legal form	Ownership	Sources of finance	Liability	Who runs the business
Sole trader	Little or no legal form	The proprietor	Personal savings, bank loan	Unlimited	The owner
Partnership	Partnership Act 1890, written agreement among partners	2–20 partners	Capital provided by partners	Unlimited, although some partners can have limited liability	The partners
Private Limited Company (LTD)	Registered under Companies Act 1985	Shareholders 2 or more (no maximum)	Issuing shares (restrictions On selling them), bank loan	Limited	The board of directions. Although the day to day running is done by the directors. Directors are elected by shareholders
Public Limited Company (PLC)	Registered under Companies Act 1985	Shareholders 2 or more (no maximum)	Issuing shares (can be freely sold), bank loan	Limited
Nationalised Industry	Act of Parliament	State owned	Government assistance	Limited	Board of directors appointed by the government
Co-operative	Industrial and Provident Societies Acts	Owned by members, whether the customers or workers	Shares,.1 each with an upper limit of .10 000	Limited	Management Committee elected by the members

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