Business Ownership Types :: essays research papers

There argon different types of ownership within the line of products sector. Sole tradership is when the calling is to the abounding owned and managed by one person, though others can be industrious to help run the business. As the sole traders only financial income is from the business and/or bank loan, they do not entertain the resources to expand and adopt regional or national beas. These types of businesses are located in the subaltern business sector and usually cover local areas. Such businesses could be hairdressers, corner shops or grocery stalls etc. Sole traderships have absolute liability so if the business fails to pay its debts the financial obligation falls on the owner/s to pay the debts in full even if they have to sell their business, personal possessions and assets.Another example of business ownership is a partnership. Examples of partnerships used in business are accountancy firms and solicitors firms. A partnership has two or more owners. They work, manage and are responsible for the running of the business. Individual partners may concentrate on a certain aspect of the business where they have expert knowledge. As in that respect is more than one owner, larger amounts of capital can be supply into the business via personal funding or bank loans. Partnerships have an un check liability.There are two types of limited companies Private and public. Shareholders own cliquish limited companies. Members of the public cannot buy the shares and the shareholders cannot buy or sell their shares without proportionateness from the other shareholders. Family owned businesses or larger businesses such as utter(a) would fit into this category. Public limited companies have shares on the stock market and can be bought and sold by any member of the public, this flair the company can raise further capital and expand their resources. Tesco and British Telecom are such examples. Both these types of limited companies have limited liability, w hich means the owners of the business are only liable for the amount they invested in the business (unless the debt is so large that the business has to be sold to recall the debt).Co-operatives are companies that are owned by a group of pile (members) who have shares in the company. Shares can start as little as 1 and each member has a share in the Co-operative. It is the members (shareholders) who pay the co-operative and they control on how the business and profits are run.