Business structure: economic sectors and forms of ownership

Learning objectives

Classify businesses into the primary, secondary, tertiary and quaternary sectors and into the public and private sectors, with an example of each.

Explain why the balance between the sectors shifts as an economy develops (industrialisation, then deindustrialisation) and analyse the consequences for businesses and workers.

Compare sole traders, partnerships, private and public limited companies, franchises, co-operatives, joint ventures and social enterprises in terms of ownership, control, liability and access to finance.

Explain the difference between unlimited and limited liability and why it matters to owners, lenders and suppliers.

Evaluate the most suitable form of ownership for a given business and the gains and drawbacks of converting from one form to another, such as a sole trader incorporating or a private company floating its shares.