1. Sole proprietorship:
A business firm owned by a single person who
bears full legal liability for the firm’ debts. In sole proprietorship,
business is easy to start, quick decision making and too much money involved.
2. Partnership
A business firm owned by two or more persons
with each person bearing full legal liability for the firm’s debts. Partnership
is divided into three other forms that is general partnership, limited
partnership and limited liability partnership. Persons can form partnership by
written and oral agreement.
3. Corporation
A business firm that is a separate legal
entity from its owners, or shareholders, each of whose liability is limited to
the amount of his or her investment in the firm. A corporation is owned and
controlled by shareholders. Additionally, it involves double taxation, cost of
organization, record keeping, greater regulation, director and shareholder
liability.
4.
Limited Liability Partnership:
A limited liability
partnership is basically a general partnership with the addition of giving the
partners at least some limited personal liability. All the partners are protected
from wrongful acts and negligence of other partners.
5.
Franchises:
It involves you
using another company’s successful business model to create your own shop,
restaurant etcetera. Franchise are for a fixed period of time – from five to 35
years- and cover a location known as ‘territory’.
6
Workers Co- operatives
This is truly an
egalitarian form of business that is formed to meet the mutual needs of the
workers. All decisions are made by democracy and the profits are shared equally
among the people. Cop-operatives follows guidelines principles to work
efficiently.
"Six
Basic Terms of Business That One Should know Before Starting a Business" Retrieved from:
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