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. Starting a business is something that can be done in various ways. 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.
A business ownership is a great factor that determines the success of any kind of a business and thus important for every entrepreneur to consider the form of ownership he or she wants for his or her business before coming up with any type of a business. A business can be organized in many different ways which all are brought about by the many forms of business ownerships. The major forms of business ownerships recommended are discussed below.
The first form of a business ownership is known as sole proprietorship. Among the many forms of business ownerships known, sole proprietorship is however one of the most basic form of business ownership. Sole means one and thus sole proprietorship form of ownership means that the business is owned by only one individual who is responsible for all the business operations.
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. There are however some few reasons why sole proprietorship business is very important one of them being the flexibility and less capital requirements.
The second most common form of ownership that every business person should also consider when starting a business is the partnership ownership. Partnership ownerships are businesses that are owned by either two or several persons. Under partnership ownerships, the partners share the returns generated on equal basis. 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. The other forms of business ownerships include co-operatives, franchise as well as limited liability companies.