A business is defined as An organization engaged in commercial industrial and professional activities. Businesses can be for-profit or non-profit. First of all, business depends upon the partnership or high struggle. The struggle is a primary point of business success. There are so many rules for a successful business.

Types of business:

                     There are five major types of business!

• Sole proprietorship

• Partnership

• Limited liability company

• Corporation

• Cooperative

Sole proprietorship:

Defination:

A sole proprietorship is defined as a business that can be controlled by an individual or a company.

Explanation:

There are partners in this business of any type. It is not a separate legal entity from the business owner. This business owner has unlimited liability. It can be shown in the owner's name. A sole proprietorship business can be operated by the name of the owner or under any fictitious name. The fictitious name does not create a legal entity separate from the sole proprietor owner it is a simple trade name. A sole proprietorship business, also known as a sole tradership or proprietorship.,s run without any partner there is no legal distinction between the owner and the business entity. In a sole proprietorship business, the sole owner is personally liable for the debts and expenses of the business. The sole owner have also the risk of losing their assets. A sole proprietorship business is an unincorporated business with a single owner who alonely pays the personal tax on profits earned from the business. A sole proprietorship is a very common structure chosen to start a business.

Example:

There are many examples of sole proprietorship but some examples are the following:

• A local grocery store

• A local clothes store

• Freelance writer

• IT consultant freelance graphic designer......etc.

Source

Partnership:

Defination:

A business partnership is an arrangement between two or more people to handle the business and share it,s profile and liabilities is called business partnership.

Explanation:

In a partnership company, all the members share all profits and liabilities. A partnership is good in business because it increases the lease of knowledge, expertise, guidance, and resources for business to make it powerful and successful. A good partnership of business makes a great hight of business and it enhances the ethos of our firm. We can get very osm feedback from businesses through an osm partnership. The partnership is crucial to the growth of any business venture. The trend of the partnership business is very much applicable today. It is important to look for the right partnership agreement that benefits both parties.

Example:

• Law firms

• Physician groups

• Real estate investment

• Accounting groups....etc

Sorces

Limited liability company:

Defination:

A limited liability company is defined as it is a business structure in the U.S that protects its owner from personal responsibility for its debts.

Explanation:

Limited liability companies are hybrid entities that combined all the characteristics of a corporation with those of a partnership or sole proprietorship. In this type of business, the member's assets are protected from creditors seeking to collect from the business. It is a business structure that carries several pros and cons for the business owner. Members can manage an LLC, which allows all owners to share in the business's day-to-day decision making Alternatively professional managers, can manage the business. The is helpful if members want to hire people who are more experienced in running a business. In many states, an LLC is member-managed by default unless explicitly stated otherwise in filings with the secretary of the state or the equivalent agency. With Advantages, there are many disadvantaged too in this business. Disadvantages are these, A judge can rule that our LLC structure does not protect our personal life and you can be at the risk, for example, if you don't separate business transactions, or if you run the business fraudulently in ways that caused losses for others.

Examples:

• Blackberry

• Pepsi-cola

• Sony

• Nike

• eBay

• IBM......etc

Source

Corporation:

Deifination:

A corporation is a legal entity that is separate and distinct from its owner and is called a corporation in business.

Explanation:

Under the law, corporations possess many of the same rights and responsibilities as individuals, They can enter contracts, loan, sue and be sued, and pay taxes. A corporation is an organization usually a group of people or a company authorized by the state to act as a single entity and recognized as such in law for certain purposes. Early incorporated entities were established by the charter. Most jurisdictions now allow the creation of new corporations through registration.

Types:

• C corporation

• S corporation

• Limited liability companies

• Non-profits

A corporation is a business entity that is owned by its shareholder who elects a board of directors to oversee the organization's activities. A corporation is a legal entity created by individuals, stockholders, or shareholders to operate for a profit. A corporate structure is perhaps the most advantageous way to start a business because the corporation exists as a separate entity.

Examples

• Apple Inc.

• Walmart Inc.

• Microsoft corporation

Source

Coperative:

Deifnation:

A cooperative business is defined as a business owned by the member-owners is called cooperative.

Explanation:

cooperative businesses are democratically controlled by their member-owners and unlike a traditional business, each member gets a voice in how the business is run. Services or goods provided by the cooperative benefit and serve the member-owner. When the people use the products and services a company has to offer own and operate the company it's known as cooperative. Cooperative are people-centered enterprises owned controlled and run by and for their members to realize their common economic, social, and cultural needs and aspiration. As a business is driven by values, not just profit, cooperatives share internationally agreed principles and act together to build a better world through cooperation putting fairness, equality, and social justice at the heart of the enterprise, cooperatives around the world are allowing people to work together to create sustainable enterprises that generate long-term jobs and prosperity. Cooperative allows people to take control of their economic future because they are not owned by the shareholder, the economic and social benefits of their activity stay in the communities where they are established.

Example:

• Finance

• Utility

• Insurance

• Housing

• Health care cooperative.....etc.

()
Source

I hope you learn and enjoy a lot to my post. See you in the next post!

10% Rewards goes to @businessactivity.

Special Mention:
@oscarcc89 admin Founder 🔹
@reddileep
@rjlv190 mod Team SBA🔹
@riska-amanda mod Team SBA-Entrepreneur 🔹
@cindycam mod Editorial Staff