Cambridge AS A Level Business Studies/ ZIMSEC Advanced Level Business Studies/ Business Enterprise Skills Notes: Types of businesses

  • It has already been said in the introduction that a business is an activity that involves an individual/group of individuals coming together to combine economic resources (factors of production) to achieve certain objectives (usually to make a profit)
  • From the definition it already clear that not all businesses are the same
  • As you go about in the real world you might have noticed that some businesses are owned and controlled by one person while others are owned by more than one person
  • While all business share the trait that they involve combining economic resources they are not all the same
  • We can, however, classify businesses depending on their legal form as well as other criteria such as the number of owners, legal requirements, capital requirements, whether the business is for profit or not
  • Based on this the following types of businesses are prevalent:
    1. Sole Proprietorship
    2. Partnerships
    3. Limited Liability Companies which are otherwise simply known as Companies and these include:
      1. Private Limited Companies
      2. Public Limited Companies
    4. Franchise businesses
    5. Co-operatives
    6. Joint ventures
    7. Multi-National Companies (MNCs) otherwise known as Trans-National Companies (TNCs)
  • Each business form/type has its own distinct features/characteristics that set it apart
  • Also, each business form has its own advantages/benefits and disadvantages/drawbacks

To access more topics go to the Advanced Level Business Studies page

To access more topics go to the ZIMSEC Business Enterprise and Skills page

To access more topics go to the Cambridge AS A Level Business Studies page

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