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. There are several methods of beginning a business used by different people across the world. Some of most common ways that a large number of people across the world consider when starting up their businesses include individual business start-ups as well as partnership business start-ups. These are generally some of the major ways that have led to 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. There are different forms of business ownerships that any business person can consider for his or her business where some of the most common business ownership forms are discussed below.
It is generally very important to make sure that you consider that you consider the sole proprietorship form of business ownership before coming up with a business. Among the many forms of business ownerships known, sole proprietorship is however one of the most basic form of business ownership. It is important to note that in the sole proprietorship form of ownership there is only one person who owns the business and is generally responsible for all the activities that run in the business.
In the sole proprietorship ownership, the business person is actually liable of all the mistakes and losses made in the business. Any kind of return or income that the business generates only belongs to the owner of the business who is supposed to keep them or use them to expand his or her business further. The major reasons why sole proprietorship businesses are very common across the world is because of the low costs associated with these forms of ownerships.
The other most common form of business ownership is the partnership form of ownership. In this form of ownership, there are two or more owners of the business. Unlike sole proprietorship ownerships where profits are kept by the owner, the partners share the profits generated equally under partnership ownerships. The third form of business ownership is known as corporation ownership. Raising capital in corporation businesses is very easy due to many sources of finance they have compared to other forms of business ownerships. Business ownership forms also include franchise, co-operatives as well as limited liability companies.