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 .
