Business Communication | Introduction to Business

INTRODUCTION TO BUSINESS

TYPES OF BUSINESS

1.   SOLE  PROPRIETORSHIP:  It is the form of business organization  that has only one owner who invests capitals in business and is fully responsible for his business  operations . He enjoys all profit and is responsible for the losses .

2.   PARTNERSHIP: It is the kind of business ownership with at least two co-owner and maximum twenty . Profit or Loss is divided prorate among partners . Partners enjoy certain rights , perform duties that must be honored.  Partnership is based on agreement among partner to carry on a business for profit.

3.   JOINT STOCK COMPANY : It is also referred to as corporation . It is an artificial being, intangible, invisible, and existing in accordance with the law. It has its own existence separate from its owner (shareholders) and hence can sue , be sued , and enter into agreement in its own name. Unlike sole proprietorship and partnership the owner of the company are not responsible for the acts of the company . Hence , the liability of shareholder is limited to their investment in the capital of the company. Memorandum of association , articles association , and prospects are fundamental document required in the formation of a company which must be registered with the registrar of the company

3.     COOPERATIVE SOCIETIES: It is an association of consumers to establish a business based on mutual cooperation and operated on no profit , no loss basis. Cooperative banks and cooperative housing societies are quite .

 

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