Sole Traders: When an individual sets up a business on there own, e.g. plumbers, decorators, window cleaners, and hairdressers .  The people running these businesses work for themselves and remain responsible for the overall business and are actively involved in running it on a daily basis.

Advantages:

• makes own decisions which can be motivating
• can make decisions quickly and respond rapidly to changes in the market
• has direct contact with the market
• setting up is easy

Disadvantages

• limited sources of finance
• relies heavily on his or her ability to make decisions
• limited holidays
• unlimited liability

Private limited companies:  Has shareholders but its shares cannot be advertised or sold on the stock exchange.  the owners can place restrictions on who the shares are sold to in the future

Advantages:

• can control who shares are sold to - less chance of takeover
• decreased media attention, less likely to have to behave ethically
• less regulation

Disadvantages:

• less access to finance, shares are sold privately 
• less media attention - brand awareness

Public limited companies:  can advertise its shares and can sell them on the stock exchange,  shareholders in public companies can sell there shares to whoever they wish - this can pose a threat as rival companies could try and buy up the shares in a company in an attempt to gain control of it.

Advantages:

• more access to finance; sell shares to public
• more media attention; free publicity
• public assume plc are more successful than ltd

Disadvantages:

• subject to greater regulation e.g. have to include more information about their accounts
• more likely to have activities investigated by the media, may have to behave more ethically
• more vulnerable to takeover

Franchise:  is the practice of using another firms successful business model, taking a stake in the business, e.g. opening a McDonald's under a franchise and running the outlet

Advantages:

• doesn't have to take liability for faults, as they are a branch of a business. 
• has a prepared efficient business plan already
• provided with a successful business to run - less risk
• brand awareness

Disadvantages:

• a large percentage of profits has to be paid to the franchise
• running costs
• location

Partnership: when two or more people set up a business, and run it themselves

Advantages:

• more access to finance
• can take holidays as there is someone else to run the business
• if a partner dies business will not fail

Disadvantages:

• Less profits
• decisions take longer to make