Types of Business Organisation

This lesson is designed to be used in the classroom or as a homework task to support the teaching and learning of Types of Business Organisation in BTEC Business.

Types of Business Organisation

This resource is designed specifically for Unit 1 of the Edexcel BTEC National qualification, 'Introduction to Business'.


The aim of this resource is to develop your understanding of business organisations. By the end, you should be able to:

  • Identify the differences between the private and public sectors of the economy
  • State the four traditional examples of business organisations in the private sector (sole trader, partnership, private limited and public limited company)
  • Understand the difference in terms of liability between these business types
  • Identify two non-traditional business types (co-operatives and franchises)



A McDonald's restaurant
  1. Go to the Business Organisation notes and review the table of different business organisations (http://www.bized.co.uk/learn/economics/micro/notes/busorg.htm)
    • Research into the different types and find two further examples of each, drawn from your experience.
  2. The second part of the Activity is based on one of the less traditional business types - a franchise.
    • Go to the Biz/ed Business Profiles(http://www.bized.co.uk/compfact/business_profiles.htm).
  3. Find an example of a business organisation based on a franchise arrangement. Write notes on the advantages and disadvantages of this business arrangement from the point of view of:
    • The franchisee
    • The franchisor

Image: McDonald's - one of the most famous franchises in the world. Copyright: Les Powell