What are the forms of business ownership?

There are a number of types of business ownership, taking account of the many different circumstances surrounding a business's ownership and the numbers of people involved.
Many small businesses, for example hairdressers, are sole traders. These are businesses owned and controlled by one person. Sole traders have 'unlimited liability' meaning that the law sees the business and the owner as one entity which means they are liable personally for all debts accumulated by the business, even if it fails.
Partnerships are businesses owned and ran by two or more people. This type of ownership is much the same as a sole trader, however you share responsibility with your business partner. This type of business ownership comes with unlimited liability.
Limited companies are incorporated. This means that they have their own rights in front of the law and can sue, owe or own assets in their own name. Limited companies' ownership is divided into equal parts known as 'shares'. A person owning a share is known as a shareholder. A large benefit of this type of ownership is known as 'limited liability'. This means that any debts accrued by the business are held by the business and shareholders are not personally liable for the business's debts.
Franchises are how an entrepreneur wishing to use an existing business's idea may enter the market. They would become what is known as a 'franchisee' and acquire the rights to trade as that business. The franchiser, or owner of the original business, may allow this for a fee and/or a share of profits. Prominent examples of this type of business are McDonalds and Subway.