Types of Business Ownership - 1074 Words

1. Sole Proprietorship Single proprietorship is the simplest form of organization in most of the countries in the world. Unlike other forms of entity, it is usually not governed by special laws. A proprietorship is a type of business entity which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. All debts of the business are debts of the owner. The single proprietor has unlimited liability since creditors of his business may proceed not only against the assets and properties of his business but also after his own personal assets and properties. A sole proprietorship essentially refers to a natural person or†¦show more content†¦Joint ventures are created in the essence of serving their purposes. They can be composed of a corporation, partnership or an individual. 5 Main Forms of Business Ownership Sole Proprietorship- A sole proprietorship is owned by only one person. This is the most common form of business ownership. General Partnership- A business owned by two or more people. The partners share ownership and control of the business. Limited Partnership- A limited partnership consists of at least one general partner (controls the business) and at least one limited partner(investor). Forming a Corporation- A corporation is a business which is considered a separate entity from you; even having the legal rights of a person. There are two types of corporations; C Corporations and S Corporations. Limited Liability Company- The new â€Å"It† thing in the world of entrepreneurship. It’s popularity has been steadily growing in the past years. What attracts entrepreneurs to this business structure is that it provides the limited liability provided by corporations with out all the restrictions and taxes. Business activities may be divided into three kinds: 1. Industry 2. Commerce 3. Services This classification is based on the nature of principal activity performed by the business enterprise. 1. Industries involve the conversion of raw materials into finished products or goods and the application of labor upon raw materials so that greater usefulness becomesShow MoreRelatedTypes Of Business Ownership And Ownership Essay1327 Words   |  6 Pages Types of Business Ownership Name Institutional Affiliation â€Æ' Business Ownership Introduction Business ownership refers to having control over a business enterprise and exercising this power by dictating its operations, functioning, and management. Ownership can be acquired either through franchising or purchasing an existing business. There are three types of business ownership, namely sole proprietorship, corporation, and partnership. A single entrepreneur can own several businesses underRead MoreTypes of Business Ownership1072 Words   |  5 PagesThe sole proprietorship is the simplest form of business organization. A sole proprietorship is a business that is owned by an individual who is solely responsible for all aspects of the business. The owner is personally responsible for all debts of the business, even in excess of the amount invested. The business and its owner are thus considered the same entity. The advantages of a sole proprietorship include: a. Low start up costs, as legal and filing fees are at a minimum. However, manyRead MoreBusiness Types of Ownership993 Words   |  4 PagesBusiness Types of Ownership Before starting any venture it is very important to figure out how the organization is going to build its chain of command. Basically no business is made for short time and for this reason a very careful measurement should be done on ownership. Choosing the appropriate ownership in an organisation depends on nature of business, type of authority, delegation of work, span of organization, type of product, production and operation, legal procedure, financial matters andRead MoreTypes of Business Organisation and Ownership1626 Words   |  7 PagesType of business, purpose and ownership (P1) To run a business smoothly or effectively all business have aims or purpose, this could be survivor, to grow, to become a market leader. A business also aims to provide exception service or to create a reputation as the best on market. Types of business To understand how business works and what they set out to achieve, it’s necessary to have an understanding of the main types of business sectors which exists within a business organisation. There areRead MoreDifferent Types Of Business Ownership1277 Words   |  6 PagesTypes of Business Ownership: Everything You Need to Know Before you can determine how you want to structure your business, you#39;ll need to know what your options are. The below are your choices when it comes to running your business: sole proprietorship, partnership, limited partnership, limited liability company (LLC), corporation (for-profit), nonprofit corporation, and cooperative. It is important that you choose the right structure for your business as the type of structure you choose willRead MoreComparing Types Of Business Ownership1331 Words   |  6 Pages Comparing Types of Businesses Name: Sabrina Bhinder Date: September 10th, 2014 In the space below, explain each of the following terms and provide an example. Forms of business ownership (5K marks) 1. Sole proprietorship †¢ A business that is just owned by only one person, who receives all the profit for everything. Example of a sole proprietorship can be a hairdresser that buys a chair for their business and can get customers directly for them. 2. Partnership †¢ WhenRead MoreThe Types of Business Ownership Essay examples840 Words   |  4 PagesThe Types of Business Ownership This report is about the advantages and disadvantages of different types of business ownerships. Introduction I am going to write about the advantages and disadvantages of different business ownerships including: * Sole Trader * Partnership * Franchise I will include the definitions of some of the business ownerships. Main Body SOLE TRADER Sole trader, as the name suggests, is where anRead MoreInvestigation of the Types of Business Ownership Essay801 Words   |  4 PagesInvestigation of the Types of Business Ownership JCC Limited is a private limited company. Other forms of business ownership include: The sole trader. This is the most common form of private sector business. This type of business has one owner who runs the business and may employ any number of people to help. Advantages of being a sole trader include the lack of legal restrictions, the sole trader is able to set up their business relatively quickly. Also all profits Read MoreTypes Of Business, Purpose And Ownership Of Two Contrasting Business2226 Words   |  9 PagesP1:Describe the type of business, purpose and ownership of two contrasting business Coca cola Coca Cola is a soft fizzy drink sold in every store throughout the world. It is produced by The Coca Cola Company of Atlanta in Georgia, and is often called as Coke. Purpose:- The purpose of coca cola is to design develop and advertise soft drinks the customers can enjoy, and also make profit from selling of soft drinks. Ownership:-The history of coca cola begin In 1892, Candler set out toRead MoreTypes Of Business, Purpose And Ownership Of Two Contrasting Businesses Essay1227 Words   |  5 PagesTASK-1 Describe the type of business, purpose and ownership of two contrasting businesses. (P1). 1. A brief introduction to the two local businesses? For profit business kokuyo camlin limited (Kokuyo camlin limited) Source: https://www.google.co.in/search?q=kokuyo+camlin+logo Introduction: kokuyo camlin ltd formerly known as camlin ltd is an Indian stationery company based in Mumbai india kokuyo japan holds around 51% stake in kokuyo camlin camlin manufactures art materials market