Ownership Types

• Sole traders are one-person businesses where the individual has full control and ownership. The profits are entirely theirs, but they also bear any losses.
• In a partnership, ownership is shared between two or more individuals who have each invested in the business.
• Private limited companies (Ltd) are owned by shareholders who have bought shares privately. These shares cannot be sold to the public.
• Public limited companies (PLC) are businesses whose shares can be purchased by the public on the stock exchange. Shareholders own the business.

Liability

• Unlimited liability occurs when business owners are personally responsible for all the debts of the business. This applies to sole traders and partners.
• Limited liability protects shareholders' personal assets. They will only lose what they have invested in the business. This applies to limited companies (both PLC and Ltd).

Business Size

• Micro businesses tend to have fewer than 10 employees. These businesses often function in a niche market.
• Small businesses usually have between 10 and 49 employees. They have a larger market presence than micro businesses but are still outranked by medium and large enterprises.
• Medium-sized businesses typically have between 50 and 249 employees. They often operate in broader markets and have an extensive customer base.
• Large businesses have more than 250 employees. They are usually well established with a significant market presence.

Evaluating Business Size

• Business size can be judged by looking at turnover, which is the total income of the business in a specific period.
• The number of employees is another way to gauge business size.
• The market share can also indicate the size of the business. This is the percentage of total sales in a market that belongs to one business.

Impact of Ownership, Liability, and Size

• Ownership, liability and size impact on a business's risk levels, profit shares and decision making processes.
• Larger businesses may have a more complex decision-making structure due to the greater number of stakeholders involved.
• The choice of ownership type could impact on how profits are shared and reinvested.
• Varying liability levels (whether unlimited or limited) would directly affect the risk involved for the owners. Ownership and liability both play a role in attracting potential investments for the business.