Business is a very trending topic on the internet nowadays, here in this article we will learn about different types of businesses and what are their structure. Business is a hot topic that never ends because the more you learn the more you want to learn. The following are the most common form of business ownership.
What Are The 4 Types Of Business Structure
- Sole proprietorship
- Cooperative Society
A business that is owned by a single or an individual person is said to be a sole proprietorship. In this type of business owner enjoys all the profit and loss himself means in this business liability is normally unlimited. It enjoys lots of benefits that other owners cannot, followings are some of the advantages and disadvantages are mentioned below.
Advantages of Sole Proprietorship
- Ownership of all profits
- Ease of Formation
- Ease of Dissolution
- Tax Saving
- Freedom of Action
- Low Cost
- Low requirement for registration and starting operations
Disadvantages of Sole Proprietorship
- Unlimited Liability
- Difficulties In Management
- Limited Size
- Lack Of Opportunities For Employees.
Importance Of Sole Proprietorship
A sole proprietorship gives the chance to become your own boss and this type of business is very helpful to reduce poverty in the country or it can control poverty, it helps a country to circulate the fund of the whole country which helps to grow the economy.
A business that two or more people own is said to be a partnership. Liability is apportioned in 50% 50% or in ratios according to the share capital. Usually, there are three main types of partnership businesses which are following.
Types Of Partnership
- General Partnership
- Limited Liability Partnership
- Unlimited Liability Partnership
Features of Partnership
- At least two partners
- There must be an agreement, written or oral.
- The business must be for-profit purposes 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.
Importance of Partnership
The partnership helps in reducing the burden of work, capital, risk, and loss. It is very useful business when a person does have not enough capital to start his own business or a person who needs help in doing business operations.
A company or cooperation is defined as “an artificial being, intangible, invisible but existing according to the law of company ordinance is known as company/cooperation. There are two types of companies one is the public which can offer its shares to the general public and another one is private which can not offer its shares to the general public.
Advantages of Company
- Limited Liability
- Transfer of Ownership
- Large Size
- Ease of Expansion
- Long Life
- Legal Entity etc.
Disadvantage of company
- Organizational Expenses
- Lack Of Secrecy
- Lack of Credit Standing
- Personal Interest etc.
Importance Of Company
In a country, a business company plays many important roles such as it helps a country to grow its economy by reducing unemployment. It is very easy for a business to make its brand quickly when its business is in the form of a company.
A cooperative society is a group of people and Institutions that come into existence to Offer various services to its members.
Advantages Of Cooperative Society
- Low Prices
- House Loans
Disadvantages of Cooperative Society
- Fee Payment
- Unlimited Liability
- Payment Of Service Charges
- Difference Of Opinion.
Importance Of Cooperative Society
A cooperative society no doubt plays an important role in the country by protecting the rights of the consumers and producers as well. They also play role in controlling the commissions and profit margin of middlemen.
Types Of Entrepreneurship
Followings are the most common types of entrepreneurship:
- Small Business Entrepreneurship: A small business without a chain such as a single shop grocery or cosmetics.
- Large Company Entrepreneurship: Usually start a business with the mindset of growing and making a chain of their brand as their brand grows the size of the business grows as well.
- Scalable Startup Entrepreneurship: A business that believes in growth, it just works on those ideas that can be profitable and work for it.
- International Entrepreneurship: A business that has the potential to grow all over the globe web development and digital marketing can be your choice.
- Social Entrepreneurship: A business that is done for profit but under the social benefit means supplying products that are environmentally friendly.
- Environmental Entrepreneurship: Business that focuses on the environment means they focus on providing reusable items sometimes known as ecopreneurship.
- Hustler Entrepreneurship: A business that believes in hard work rather than just capital, usually it is starting from a small business and work hard for growing.
- Joint Entrepreneurship: When two persons are connected with each other for the purpose of business is termed joint entrepreneurship.
- Corporative Entrepreneurship: Usually makes new products or services by dealing inside the existing organization rather than making a new one (usually works with large companies).
- Private Entrepreneurship: A self-employed person, capital is normally very small.
- Research Entrepreneurship: A business that gathers information about different brands and companies to develop new inventions.
- Innovative Entrepreneurship: A business that creates ideas that are profitable and improves the value of the company.
- Imitative Entrepreneurship: Make duplicate ideas by the innovations of the other entrepreneurs.
- Buyer Entrepreneurship: Normally buys those existing or new businesses that can grow and make a profit in the future time.
What Is Community Business Model
A community business model can be defined as a business that can make revenue with or without using physical products or services. Their primary work and focus are to give relief to the community and they offer membership to the members and make efforts to get them involved in the community.
Types Of Community Model In Business
There are 3 major types of community models in business which are followings:
- Locality Development
- Social Planning
- Social Action
See How Small Businesses That Help The Community To Grow
There are many businesses that are making a profit and along with that they are growing and helping the community as well following are some ways that small businesses use to help the community to grow.
- Many business owners donate funds to the hospital
- Provides food, clothes, and shelter to the needy
- Provides the education facility
- Support minorities by protecting their rights etc.