Types of Business Entities

Summary

Main types: sole trader, partnership, company, and non-business entities (charities, clubs, government). Each has different legal status, liability, and reporting requirements.

Key Points

• Sole trader: owned and managed by one person, unlimited liability.
• Partnership: owned by two or more people, joint and several liability.
• Company: separate legal entity, owned by shareholders, limited liability.
• Non-business entities: charities, clubs, societies, government bodies.

Reference

See: [[ACCA Book-keeping/IACEW PDF.pdf]]

• Chapter 1: Introduction to accounting (pages 5–8)
• Section: "Types of business", "Sole trader", "Partnership", "Companies", "Non-business entities"