Education

Types of businesses

If we talk about types of businesses then we cannot specify it but major types of businesses are following,

Types of businesses

  1. Sole proprietorship
  2. Partnership
  3. Company/cooperation
  4. Cooperative Society.


Sole Proprietorship:

It is the business which is owned by a single owner who is referred as 

Sole proprietorship. 

It enjoys lots of benefits which other ownership cannot. 

Advantages of Sole Proprietorship

  • Ownership of all profits
  • Ease of Formation 
  • Ease of Dissolution 
  • Tax Saving 
  • Secrecy 
  • Freedom of Action 
  • Low Cost.


Disadvantages of Sole Proprietorship

  • Unlimited Liability
  • Difficulties In Management
  • Limited Size
  • Lack Of Opportunities For Employees.

Partnership:

It is the business which is owned by two or more persons.

Features of Partnership

  • At least two partners
  • There must be an agreement, written or oral.
  • The business must be for profit and etc.


Advantages of Partnership

  • Large Capital
  • High Credit Standing
  • Combined Judgement And Skills
  • Personal Interest
  • Tax saving etc.

Disadvantage of Partnership

  • Unlimited Liability
  • Divided Control And Management
  • Lack Of Continuity
  • Disagreement among the partners etc.

Company/Cooperation:

A company or cooperation is defined as,

 “an artificial being, intangible, invisible but existing according to law of company ordinance is known as company/cooperation.

Advantages of Company

  • Limited Liability 
  • Transfer of Ownership 
  • Large Size
  • Ease of Expansion 
  • Long Life
  • Legal Entity etc. 


Disadvantage of company

  • Taxation 
  • Organizational Expenses 
  • Lack Of Secrecy
  • Lack of Credit Standing 
  • Personal Interest etc. 

Cooperative Society:

The cooperative society is the group of people and Institutions that come into existence to Offer various services to its members. 


Advantages Of Cooperative Society 

  • Continuity 
  • Low Prices 
  • Loans
  • House Loans


Disadvantages of Cooperative Society

  • Fee Payment
  • Unlimited Liability
  • Payment Of Service Charges
  • Difference Of Opinion.

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Naveen Rajput

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