• To extend a hobby: Some business owners start a business based on a hobby they enjoy, especially as they near retirement. This could include being a handyman or setting up a gardening business or a bookstore • To provide employment: Businesses often have employees. Some are started to provide jobs for local people, young people, or people who are disabled or elderly. Every business needs a type of ownership structure, no matter why it starts. 16.3.2 Three main forms of business ownership A business owner can choose different types of ownership. The three main types are: 1. sole proprietorship (one person) 2. partnership (a group) 3. corporation (owned by shareholders). Businesses can also be cooperatives or franchises.
FIGURE2 Many types of businesses are possible.
Sole proprietorship A sole proprietorship is a business owned by one person, though they can hire others. These are usually small businesses like cafés, hairdressers, plumbers or electricians.
SkillBuilder discussion Investigating 1. Who owns a sole proprietorship business? 2. What is the simplest form of business structure? 3. What is the owner’s responsibility in a sole proprietorship business?
FIGURE3 A sole proprietorship means the business is owned by one person.
554 Jacaranda Humanities Alive 7 Victorian Curriculum Third Edition
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