Business enterprises: it is any type of business operation which involved in providing goods or services
with an anticipated outcome of earning a profit.
Sole proprietorship: it is the form of business which is the most simplest , owns and runs by a single
individual for his/her own benefits.
Advantages:
1. All profits are subject to owner.
2. There is very little regulations for proprietorship.
3. Owners have all flexibility while running the business.
4. Very few requirements for starting.
Disadvantages:
1. Owner is 100% liable for debts
2. There is no distinction between personal and business income.
3. No possibility of transfer the business.
4. Equity is limited to the owner personal resources.
“”””Partnership””””
Partnership business is divided into two types , general and limited.
1. General partnership: in the form of business both the partners invest their money, labor, resources
etc. Partners are 100% liable for debts.It doesn’t require a formal agreement so the agreement can be
verbal between the partners.
2. Limited partnership: it requires a formal agreement between partners and they also have to file a
certificate with the government of the country. The partners can limit their liability for business debts
according to their investments.
The more, they invest the more liable they will be for debts.
Advantages:
1. Shared resources provide more capital for business.
2. Each partners shares the total profit of the company.
3. Similar and simple design of proprietorship.
4. Inexpensive to start a partnership, formal or informal.
Disadvantages:
1. Each partners is responsible for debts and losses.
2. Selling business is difficult, requires finding new member.
3. Partnership ends when any partner decide to end it.
“””Joint-stock company”””
It is the form of business which is a predecessor of modern business.
It is owned by investors, with each investors owning a share based on stock-purchased. It formed in
order to finance endeavors and it is very expensive for an individual or government to fund . The owner
of joint-stock company expect to share in profits.