Meaning of Business

Basic forms of ownership

1. Sole proprietorship: A sole proprietorship, otherwise called a sole dealer, is possessed by one individual and works for their advantage. The proprietor works the business alone and may contract representatives. A sole proprietor has boundless risk for all commitments brought about by the business, regardless of whether from working expenses or judgements against the business. All advantages of the business have a place with a sole proprietor, including, for instance, PC foundation, any stock, producing gear, or retail apparatuses, and also any genuine property claimed by the sole proprietor.

2. Association: An organization is a business claimed by at least two individuals. In many types of associations, each accomplice has boundless obligation for the obligations brought about by the business. The three most common sorts of revenue driven associations are: general organizations, restricted associations, and constrained obligation associations

3. Corporation: 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 nonprofit 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.

4. Cooperative: Often referred to as a "co-op", a cooperative is a limited-liability business that can organize as 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.

5. Constrained risk organizations, restricted obligation associations, and other particular sorts of business association shield their proprietors or investors from business disappointment by working together under a different lawful substance with certain legitimate insurances. Conversely, unincorporated organizations or people chipping away at their own particular are typically not as ensured

6. Establishments: An establishment is a framework in which business visionaries buy the rights to open and maintain a business from a bigger corporation. Franchising in the United States is boundless and is a noteworthy monetary powerhouse. One out of twelve retail organizations in the United States are diversified and 8 million individuals are utilized in a diversified business.


Basic forms of ownership


Business activities


By : Achmad Rokhim