Nowadays we can distinguish different types of companies in terms of their profile, size or ownership.
If it comes to the ownership, which means a legal status there can be: a sole trader, a partnership, a limited liability company, a public limited company and a franchise.
As concerns a sole trader, here the business is run by one, self-employed person with unlimited liability.
A partnership in turn means the business run by two or more people together, e.g. lawyers, architects, auditors etc.
Another type of business is a limited liability company. Here there is a legal disctinction between the company and the owners. The company is responsible for any debts and the owners have limited liability. This is usually small, family-run business without selling shares to the public. The company name is followed by Ltd.
In case of a public limited company it is a large company, owned by shareholders who might be e.g. large financial institutions, member of the public. The shareholders receive a dividend every year and also get a capital gain or loss when they sell their shares. A public limited company is run by managers under the supervision of a Borad. The company name is followed by Plc.
Another type of business is a franchise. Here there are two sides: a franchisor and a franchisee. A franchisor is the owner of business and allows a franchisee to set up in business using the company’s brand name, products and reputation.
We can also distinguish a joint venture which basis on cooperation of few owners who have common stake. This type of business can be temporary and has a special goal.