The document discusses different types of business organizations. It divides the economy into private and public sectors. The private sector consists of sole traders, partnerships, private limited companies, and public limited companies owned by individuals, while the public sector is made up of businesses owned by the government. The document also describes cooperatives that are owned by members who share profits and losses, franchises where a business licenses its brand to franchisees, and not-for-profit organizations that receive donations and do not aim to generate profits.

1. Types of Business Organisation BTEC Business

2. Two Sectors The economy can be divided into two sectors: The Private Sector The Public Sector

3. The Private Sector Private individuals and firms that are owned by private individuals Firms in the private sector include: Sole Traders Private Limited Companies (Ltd) Partnerships Public Limited Companies (PLC)

4. The Public Sector Made up of central government, local government, and businesses that are owned by government In the last twenty years the number of government-owned firms in the UK has shrunk massively Now, very few examples remain, for instance, the Royal Mail

5. Private Sector Firms One of the key differences is between: Sole traders and partnerships whose liability is unlimited And Private Limited and Public Limited Companies, who have ‘limited liability’

6. Other Business Types Co-operatives are owned by their staff, who are ‘members’ of the firm Profits are shared amongst the members Losses too must be shared

7. Franchises Many businesses today are franchises A business idea is licensed to a franchisee The owners of the brand receive a license fee The franchisee gains the right to use the business brand

8. Not For Profit Businesses Many charity-based business organisations are run as ‘not for profit’ operations They typically receive donations or funds from groups or government Any financial surplus is ploughed back into the business The organisation does not aim to generate profits