Different Types of Business

1. restore trader the oldest form of trading there is, its in any case the simplest and the most frequent type of communication channel organization youll find. The clue is in the name meaning that you ar solely responsible for everything the business does and youre a intimately dealtimes cognise as the proprietor. This is the usual form for meek shops and businesses that provide services such as beauticians, hairdressers, photographers, gardeners and so on. When you start out in business, most often you use your profess nones to fund the venture. However, as you start to grow, you may need to find reenforcement elsewhere.When this happens you may want or need to tape into another loving of business model 2. compact these be made up of two or more people and any mesh, debts and decisions related to the business are a shared responsibility. These are common for practices that murderer services such as accountants, dentists, doctors, solicitors and so on. 3. Com pany the correct name for this is a reciprocal fund attach to and its made up of a number of people who put their bullion together to form a joint stock of capital.These people are more comm save known as shareowners and, as the name suggests, they each own a share of the business and each take care 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 piece of the company, in law it is seen as a legal entity the same as an idiosyncratic that is entirely separate from the shareholders or members, as they are sometimes known.It can be sued, rack up a profit or loss, be held responsible for its employees actions and go into liquidation the term used for companies that go bankrupt. hidden Limited Companies Most small businesses are confidential moderate companies with the shares only available privately, for example, to family members. The shares are not available to procure everydayally so they cannot be traded on the stock market. Public Limited Companies be a Public Limited Company (PLC) is lots more complex and is usually reserved for larger companies.To be called a PLC a company must(prenominal) rich person, amongst other things, more than one manager and a trading certificate 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 means 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 en dealershipment involves you using another companys self-made business model to create your own shop, restaurant etc.Essentially, you buy the franchise and trade off the good name of the company youve bought into. For example underground youd find a gibeable me nd, tubing would provide you with their livery, food products and use of trademark. You make money because customers are already familiar with Subway so you have an instant customer base. Franchises are for a fixed period of time from five 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 readying and advice get There are specific and complex laws relating to franchise contracts so entering into one is something that needs to be thought about very carefully. 5. Workers Co-operatives This is a authentically egalitarian form of business that is formed to bear the mutual needs of the workers. Each person from the managing director to the shop floor assistant is equally important. whole decisions are taken democratically and any profits are shared equally or plow back into the business.Co-operatives follow seven guiding principles unpaid and open membership Democratic control process economic participation (financial interest) Autonomy and independence Education, training and information Co-operation among co-operatives Concern for the community http//www. ica. chicken coop/coop/principles. html This should give you a pretty good idea of the ethical and moral stance of a co-operative. 6. Limited Liability Partnerships (LLPs) LLPs are a relatively new form of business as theyve only been around since 2001.They are intended to benefit master key partnerships such as lawyers, accountants and the like, who are restricted from forming limited companies due to restrictions from their professional bodies. LLPs operate in frequently the same way as limited partnerships and go forth the members to limit their personal liability 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 spoken communication means, you should find it quite easy to decide which kind of business structure will best suit your needs.