Classification of Businesses

Businesses are categorised into public, private, and voluntary sectors.
Public sector businesses are owned and controlled by the government, such as hospitals and schools.
Private sector businesses are owned and operated by individuals or companies, e.g. supermarkets or clothing stores.
The voluntary sector includes non-profit organisations such as charities.

Sole trader: single proprietorship business, run by an individual who owns all assets and carries unlimited liability.
Partnership: formed between two or more individuals who share the profits, losses, and workload.
Limited company: the ownership of the business is divided into shares. Shareholders enjoy limited liability.
Public limited company (PLC): a company whose shares can be freely sold and traded to the public.
Co-operatives: owned and run by its members who share the profits.
Franchises: a proven business idea, where a franchisee pays the franchisor a fee to use their brand and business model.

Businesses can be classified according to their business activities:
- Primary: involved in the extraction or harvesting of natural resources, eg. farming, mining.
- Secondary: involved in the processing of raw materials into finished goods, eg. manufacturing industries.
- Tertiary: businesses providing a service to consumers, eg. retailing, banking, health services.
- Quaternary: businesses dealing in information creation and sharing, eg. IT, research companies.

Home-based businesses: run from a home office. These can include consulting, writing, and online retail.
Local businesses: operate within a small, local area, such as a neighbourhood or town.
National businesses: have operations across the country.
International businesses: commonly known as Multinational Corporation (MNC), operate in various countries.