With respect to size, business organizations are classified into four types: micro, small, medium and large. Micro businesses are those with less than 10 employees, small businesses have 10 to 49 employees, medium-sized businesses have 50 to 249 employees and large businesses employ 250 people or more.
The smallest type of business is called a sole trader, in which only one person is in charge of all the processes, from selling to accounting. A partnership involves two or more people but is similar to the sole trader in that the people running the business get all the profits. Bigger businesses, such as companies and corporations, use limited liability so that even if a company becomes bankrupt, the people owning it are protected.