TYPES OF BUSINESS

TYPES OF BUSINESS

1. Based on Ownership Structure
 • Sole Proprietorship:
One person owns and manages the business (e.g., a small shop, freelancer).
 • Partnership:
Two or more people share ownership and responsibilities.
 • Limited Liability Partnership (LLP):
A partnership where partners have limited liability.
 • Company (Corporation):
A separate legal entity owned by shareholders.
 • Private Limited Company (Pvt. Ltd.)
 • Public Limited Company (Ltd.)
 • Cooperative Society:
A business owned and run by a group of people for their mutual benefit.
 • Joint Venture:
Two or more businesses come together for a specific project.

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2. Based on Nature of Activities
 • Manufacturing Business:
Produces goods (e.g., a car factory).
 • Trading Business:
Buys and sells goods (e.g., a clothing shop).
 • Service Business:
Provides services instead of goods (e.g., a consulting firm, a salon).

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3. Based on Scale of Operation
 • Small-scale Business:
Limited operations, local reach (e.g., a local bakery).
 • Medium-scale Business:
Larger than small businesses but not national or global.
 • Large-scale Business:
Operates nationally or internationally (e.g., Tata, Reliance).

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