What do they mean?
A business that is owned by one
SOLE TRADER person. It may have one or more
employees. It is the most common
form of ownership in the UK.
A partnership is a business where two
PARTNERSHIP or more people own a company, work
together and share the profits or
losses on an agreed basis (mostly in
This means the business finances are
separate from the personal finances
of their owners.
LIMITED COMPANY Shareholders may be individuals or
other companies. They are not
responsible for the company's debts
unless they have given guarantees -
for example, a bank loan. However,
they may lose the money they have
invested in the company if it fails.
A Franchise is a right granted to an
individual or group to market a
company's goods or services within a
certain territory or location. Some
examples of today's popular
franchises are McDonald's, Subway,
Domino's Pizza, and the UPS Store.
There are many different types of
franchises. Many people associate
only fast food businesses with
franchising. In fact, there are over 120
different types of franchise
businesses available today, including
automotive, cleaning & maintenance,
health & fitness, financial services,
and pet-related franchises, just to
name a few.
Freelancing is someone who
performs tasks, usually for multiple
employers over the course of a year.
A freelancer is somewhat like a free
agent in professional sports - he or
she essentially sell their services to
the highest bidder - except that they
usually work for more than one
FREE LANCING employer.
Freelancers may work part-time or
full-time. Because they are not
considered employers, freelancers
are allowed to work for other
employers and are usually permitted
to perform tasks in their own way, so
long as the work gets done to the
Social enterprise is a business with
primarily social objectives whose
SOCIAL ENTERPRISE surpluses are principally reinvested
for that purpose in the business or in
the community, rather than being
driven by the need to maximise profit
for shareholders and owners.