There are mainly three types of businesses in accordance with ownership
1.Sole proprietorship
2.Partnership
3.Company
1.Sole proprietorship
This is a business in which only one person runs the business. He is the only person who finance it and who is the responsible for its profit and loss. This business mainly depends upon this person.This business is also called sole ownership.
2.Partnership
In partnership there are more than one persons who are running and financing the business. They share the profit/loss of business. Partners have unlimited liability.
3.Company
This is large organization which is owned by minimum 2 persons in case of PVT and 50 in case of Public limited company. The owners have limited liability which is limited to the share of their investment. Company is an artificial person which have it own seal.
1.Sole proprietorship
2.Partnership
3.Company
1.Sole proprietorship
This is a business in which only one person runs the business. He is the only person who finance it and who is the responsible for its profit and loss. This business mainly depends upon this person.This business is also called sole ownership.
2.Partnership
In partnership there are more than one persons who are running and financing the business. They share the profit/loss of business. Partners have unlimited liability.
3.Company
This is large organization which is owned by minimum 2 persons in case of PVT and 50 in case of Public limited company. The owners have limited liability which is limited to the share of their investment. Company is an artificial person which have it own seal.
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