Is a business that is owned by one person.

So traders are often successful because they can offer better consumer services.

Many consumers they are prefer to meet the owner face-to-face and a sole trader has the advantages of being more involved with local people


In a partnership two or more people own and share the costs and risks of a business.

There are two types of partnerships: limited partnership and unlimited partnership.

In a limited partnership there are one or more sleeping partners, they are liable only for the money they are invest in the business.

Our contract called a “ deed of partnership “ is normally drawn up to protect the partners from certain lack of understanding.

It is common for professionals in the services industry, like dentists, lawyers and doctors.


Is a business formed by a minimum of two shareholders.

The company’s finances are separate from the personal finances of the shareholders, who can lose the money they have invested in the company

The capital of a limited liability company is divided into shares.

Profits are usually distributed to shareholders in the form of dividends

In the UK they are divided:

private limited companies —> they cannot offer shares to the public

– Public limited companies —> they must have at least two shareholders .


Cooperative are people-centred organisations that are owned, managed and used by members,

Could be Difficulties, because of the “one member one vote” system.

ICA International Cooperative Alliance is an independent non-governmental organisation which represents cooperatives worldwide.


Franchising is an agreement in which an entrepreneur or a group of partners buys a license to use and established Business brand. The franchisee takes advantage of the success of an established Business while the franchisor can get a fast return on investment.

The franchise agreement ,there is not set way to buy a licence. it can be paid as an initial fee


A multinational corporation has its headquarters in one country but they are divided in many different countries.

Multinationals are able to avoid tax and trade barriers

They can also take advantage of lower resources costs in order to lower their cost.

There has been much controversy over multinationals, opinion is divided as to whether they are beneficial or harmful to the host of countries.


Company integration is external growth for the business that need to grow up an to increase their market share.

In Italy the most common forms of company integration are: merger, takeover and joint venture;

In UK and in USA the most common forms are takeover and joint venture.

  • A merger consists of two or more companies of similar size that decide to combine and form a single entity.A
  • Takeover/acquisition consists of one company that buy another one.
  • Joint venture consists of two or more companies that agree to start a new business or project together, for example nike and supreme.

Integration can be divided into:

Vertical: the companies involved in the integration are in the same industry, but they operate at a different stage of production

Horizontal: the companies deal with the same activities

Conglomerate mergers: the companies have totally different activities.


Are diagrams that illustrate the order within a company in terms of authority and responsibility.

Shareholders elect a board of directors and then managing director they further divide in: Finance Director, HR Director, Operations Director, Marketing Director , IT Director.

Then They have: OfficeStaff and the Workers.


A mission statement sets out the purpose of an organisation and its reason for operating.

A company’s mission statement does not need to remain the same.

It makes good marketing sense to have a mission statement for the media,your industry or sector,suppliers,clients and employees to read.

  • it can improve the focus of the company and provide a sense of purpose and  direction 
  • It promotes a sense of identity among the employees’ beliefs and standards of behavior.
  • It ensures that the interests of everyone are taken into consideration.


Is the activity of accepting or borrowing money and then lend this money to other to earn a profit.

Types of bank

  • retail banks: these deal with individual customers and concentrate on mass market products such as current and savings accounts,mortgages,loans and credit and debit cards.
  • Commercial banks: these deal with business clients and as well as current and deposit accounts,they offer currency accounts and exchange .
  • Investment banks: this works with companies and investment markets.
  • Private banks: these manage the banking and financial needs of high net worth individuals 
  • Offshore banks: these banks are located in countries which are considered with low tax .
  • Building societies: these are mutual financial institutions,which means that they are owned by their members.

Postal savings banks : these are operated in conjunction with the national postal system of a country.