Different Types of Business

1. Sole principal the oldest piss of trading there is, its excessively the simplest and the most everyday type of business youll find. The clue is in the discern meaning that you be solely responsible for everything the business does and youre often kn sustain as the proprietor. This is the usual form for small obtains and businesses that provide services such as beauticians, hairdressers, photographers, gardeners and so on. When you start out in business, most often you ingestion your own cash to fund the venture. However, as you start to grow, you may fatality to find funding elsewhere.When this happens you may want or need to show into other kind of business model 2. Partnership these argon make up of two or more people and any cabbage, debts and decisions link to the business are a shared responsibility. These are common for practices that stomach services such as accountants, dentists, doctors, solicitors and so on. 3. Company the correct name for this is a jo int stock gild and its made up of a number of people who put their money together to form a joint stock of capital.These people are more unremarkably cognize as shareholders and, as the name suggests, they each own a share of the business and each expect a share of the profits too. Each shareholder puts money into the company and receives a portion of the company shares equivalent to what they put in. Despite each shareholder owning a particle of the company, in law it is seen as a legal entity the same(p) as an individual that is entirely separate from the shareholders or members, as they are sometimes known.It offer be sued, make a profit or loss, be held responsible for its employees actions and go into liquidation the term used for companies that go bankrupt. secret Limited Companies Most small businesses are private limited companies with the shares just now available privately, for example, to family members. The shares are not available to buy publically so they c annot be traded on the stock market. Public Limited Companies Being a Public Limited Company (PLC) is much more complex and is commonly reserved for larger companies.To be called a PLC a company must have, amongst other things, more than one director and a trading present from Companies House. PLCs can sell their shares on the stock market so anyone can buy them. Whilst it is easier to raise money using this method it also content that the company accounts are in the public domain. The company must also be audited and make certain information available to Companies House. Plus, PLCs can be bought out by other shareholders. 4. Franchises A exemption involves you using another companys successful business model to create your own shop, restaurant etc.Essentially, you buy the franchise and trade off the obedient name of the company youve bought into. For example Subway youd find a suitable location, Subway would provide you with their livery, food products and use of tag. You m ake money because customers are already familiar with Subway so you have an minute customer base. Franchises are for a fixed period of time from flipper to 35 years and cover a certain location known as a territory. Youll have to pay fees to the franchisor royalties for using the trademark ees for the training and advice received There are specific and complex laws relating to franchise contracts so entering into one is something that needs to be thought approximately very carefully. 5. Workers Co-operatives This is a truly egalitarian form of business that is form to meet the mutual needs of the workers. Each person from the managing director to the shop floor assistant is equally important. All decisions are taken democratically and any profits are shared equally or travel back into the business.Co-operatives follow seven guiding principles Voluntary and open membership Democratic control Member economic participation (financial interest) Autonomy and independence Educat ion, training and information Co-operation among co-operatives Concern for the community http//www. ica. coop/coop/principles. hypertext markup language This should give you a pretty good idea of the ethical and deterrent example stance of a co-operative. 6. Limited Liability Partnerships (LLPs) LLPs are a comparatively new form of business as theyve only been around since 2001.They are intended to benefit professional partnerships such as lawyers, accountants and the like, who are restrict from forming limited companies due to restrictions from their professional bodies. LLPs operate in much the same way as limited partnerships and allow the members to limit their personal indebtedness if something goes wrong with the business. So, as you can see, businesses can be simple or complex but, once you know what all the terminology means, you should find it kinda easy to decide which kind of business structure will surmount suit your needs.