There are different businesses in the community. They are in different operations; some of them are engaged in buy and sell, others are engaged in different services while others are engaged in the manufacturing or production businesses.
Different businesses have their different forms of ownership. Some comes in the form of sole or single proprietorship; others are in the form of partnership; others are in the form of corporation and others are in the form of cooperative. These forms of ownership are different in many factors; they differ from the ownership type, they differ in the division of labor, they differ in the amount of capital that is needed and they differ in many else.
The Sole or Single type of proprietorship is owned and operated by a single owner. This is considered as the simplest as well as the oldest form of business ownership. This type of ownership can be easily established even on a small or little amount of capital. Most of the small businesses that we can found in the community are in this type of ownership.
The Partnership is owned and operated by business partners either of two to four individuals. In this type of ownership, the co-owners are jointly accountable for the business; in contributing capital for the business, in the property, in time and in energy. With this the owners agree to equally divide whatever profit is derived from their business.
The Partnership form of ownership is more complex as compared to the sole or single form of ownership. Every owner may handle one phase of the business depending upon his/her knowledge or skills.
The Corporation type of ownership is owned and operated by 5 up to 15 individuals. This form of ownership has unique characteristics; independence, the limited owner’s capability and performance. In this form, the owners and the business is considered as two different entities and the actual management may be handled by the other people. The Corporation type of ownership is subject to more government control.
The cooperative form of ownership is owned and operated by consumers residing in a certain area. This type of ownership is composed of about twenty five or more individuals. The purchasing power of these owners are pooled together which enables to purchase goods as well as services at a lower price.
Different types of ownership differs from each other on its form; an entrepreneur should choose what type of ownership he/she want to acquire, whether he/she wanted to have partner or partners in business or to be a sole proprietor in the business.
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