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- Registered: 2015-02-02
- Posts: 48
What is Business!
Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants.
Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.
Basic Kinds of Business:
There are four basic kinds of Business, They are given below.
A) Sole proprietorship:
A sole proprietorship is owned by one person and operate by one person to earn profit. The owner may operate the business alone or with his employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgements against the business. All assets of the business belong to a sole proprietor.
A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business.
The owners of a corporation have limited liability and the business has a separate legal personality from its owners. Corporations can be either government-owned or privately owned. They can organize either for profit or as not-for-profit organizations. A privately owned, for-profit corporation is owned by its shareholders, who elect a board of directors to direct the corporation and hire its managerial staff. A privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange.
A cooperative is a limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives.
Cooperatives are fundamental to the ideology of economic democracy.
Last edited by attique (2015-02-05 10:35:23)
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