A business is a form of trading that involves selling of various products and services to the clients or customers in different parts of the globe. There are several methods of beginning a business used by different people across the world. One can either start a business alone without having to cooperate with any other party or even decide to cooperate with his or her friend to come up with a business. The many ways that different people have been using to start up their businesses across the world have prompted the introduction of different forms of business ownerships across the world.
The growth and general success of a business depends on so many factors one of them being the kind or form of the business ownership and thus important for a business person whether a beginner or a grown entrepreneur to first consider the many types of business ownerships before starting a business. Business ownerships however contribute a lot to the way your business is organized. The major forms of business ownerships recommended are discussed below.
Sole proprietorship is the first most common form of business ownership that one should consider when before starting up a business. A large number of businesses across the entire globe operate under sole proprietorship forms of ownerships. Sole proprietorship however is a form of business ownership where there is only one person who owns the business and he or she is responsible and in charge of every operation or activity carried out in the business.
In case of any kind of a loss in the sole proprietorship business, it is the owner of the business who is liable for the losses. In the sole proprietorship business, the owner of the business does not share the various returns and revenues generated with any other party. The major reasons why sole proprietorship businesses are very common across the world is because of the low costs associated with these forms of ownerships.
Partnership ownership is the other type of business ownership that is also common across the world. In this form of ownership, there are two or more owners of the business. Under this form of ownership, the partners generally share the profits equally. The third form of business ownership is known as corporation ownership. Raising capital in the corporations is very easy because of the many sources of funds or finance these businesses have. Co-operatives, franchise as well as limited liability companies are some other forms of business ownerships.