Business Ownership Types :: essays research papers

There are different types of ownership within the commerce sector. fillet of sole tradership is when the business is fully owned and managed by one person, though others tin be employed to help run the business. As the sole traders solo financial income is from the business and/or beach loan, they do not cast off the resources to expand and cover regional or national areas. These types of businesses are hardened in the small business sector and usually cover local anesthetic areas. Such businesses could be hairdressers, corner shops or market stalls and so on Sole traderships have un limited liability so if the business fails to be its debts the financial responsibility falls on the owner/s to consecrate the debts in full even if they have to sell their business, personal possessions and assets. other example of business ownership is a partnership. Examples of partnerships used in business are accounting firms and solicitors firms. A partnership has two or much owners. Th ey work, manage and are responsible for the running of the business. Individual partners may cut down on a certain aspect of the business where they have practiced knowledge. As there is more than one owner, larger amounts of bang-up tolerate be fed into the business via personal funding or bank loans. Partnerships have an unlimited liability.There are two types of limited companies head-to-head and public. Shareholders own private limited companies. Members of the public cannot buy the dispenses and the shareholders cannot buy or sell their shares without agreement from the other shareholders. Family owned businesses or larger businesses such(prenominal) as Virgin 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 way 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 li ability, which means the owners of the business are only apt(p) for the amount they invested in the business (unless the debt is so large that the business has to be sold to repay the debt).Co-operatives are companies that are owned by a group of people (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 finance the co-operative and they control on how the business and profits are run.