Economy is the back bone of every nation. Whether it is a car manufacturing company, textile producing organization or people engaged in agricultural activities everything ultimately leads to the process of business. It is a system where goods or services are offered by an organization, to their consumers. Rather than opting for an applied job, certain people prefer to start a working zone of their own. They start the process with great care and labor to earn profit for them and to provide economic strength to their respective nations as well.
As we all know earlier everything was not so established. People instead of giving cash for any purchased good used to exchange products. With the emergence of industrial revolution people became aware of cash and gradual development of the social set up in which they lived. Since then keeping a stable base for agricultural production most of the countries have become capitalized in nature. Even the items produced via agriculture will ultimately lead to the buying and selling of the produced goods, hence again business.
People Engaged in a Business Process
- Most of the organizations or companies are privately owned, with the sole intension of earning huge profit.
- But, apart from profit earning organizations there are many non-profit organizations as well, mostly state owned. These kinds of organizations create provisions to remove poverty, provide free education etc.
The Ownership Patterns
- Sole Ownership
As the name sounds this owner of a business process is a single individual. Here a single person may decide to start a business of his own. The individual may work alone or hire other people to carry out the work. He will remain responsible for all the activities that will take place within his business including financial risks. No matter how crucial will be the nature of the financial risk; the owner will have to burden the weigh of that financial crisis.
- Corporate Ownership
In case of corporate ownership, it can be of both government and private type. In case of private corporate ownership, it is owned by the shareholders. The shareholders are the financial supporters of an organization, where they will appoint board of directors. The board of directors will be responsible for the proper functioning of the organization. Moreover, the board of directors will appoint managers of the variant departments of the organization to ensure that each department is providing 100% efficiency.
Here two or more individuals are owners of a business. Partnership in turn is of three types.
- General Partnership
Here two or more persons are the owners of a particular business process. There will be the presence of a legal document which will ensure the rightful possession of the business by its owners. Moreover, business partners will remain liable to any kind of legal or financial crisis equally.
- Limited Partnership
It is similar to that of general partnership, but here only one partner is considered as the general partner.
- Limited Liability Partnership
The limited liability partnership depends upon the legal document signed between the partners. Sometimes it enables a partner to be non-responsible for any kind of misconduct or forgery made by the other partner.
Other than these three there is Cooperative ownership which is a bit different. Here there are members, and unlike corporate ownership the members make all the decisions for the betterment of the organization.
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