SoleProprietorship A ‘sole proprietorship’, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts.
SoleProprietorship Every asset of the business is owned by the proprietor and all debts of the business are the proprietors. It is a "sole" proprietorship in contrast with partnerships. A sole proprietor may use a trade name or business name other than his or her legal name. In many jurisdictions there are rules to enable the true owner of a business name to be ascertained.
SoleProprietorship According to Glos and Baker "A sole proprietorship is a business owned by one person who is entitled to all of its profits, and Reed and Conover say "The single or the sole proprietorship is a business owned and controlled by one man even though he may have many other persons working for him.
Advantages ofProprietorship This entity having the ability to raise capital either publicly or privately, to limit the personal liability of the officers and managers, and to limit risk to investors. Sole proprietorships also have the least government rules and regulations affecting it. Owners have complete control over all the aspects of his business and can take any managerial decisions that he/ she wants to take.
Disadvantages ofProprietorshipRaising capital for a proprietorship is more difficult because anunrelated investor has less peace of mind concerning the use andsecurity of his or her investment and the investment is moredifficult to formalize, other types of business entities have moredocumentation.As a business becomes successful, the risks accompanying thebusiness tend to grow. One of the main disadvantages of soleproprietors is unlimited liability where the owners personal assetscan be taken away.
PartnershipA partnership is an arrangement where parties agree to cooperateto advance their mutual interests.Since humans are social beings, partnerships betweenindividuals, businesses, interest-based organizations, schools,governments, and varied combinations thereof, have always beenand remain commonplace.
PartnershipIn the most frequently associated instance of the term, apartnership is formed between one or more businesses in whichpartners (owners) co-labor to achieve and share profits and losses.Partnerships exist within, and across, sectors. Non-profit, religious,and political organizations may partner together to increase thelikelihood of each achieving their mission and to amplify theirreach.Examples: Unicef + NHRM, NDA, UPA 1, UPA 2
CooperativesA cooperative is a legal entity owned and democratically controlledby its members. Members often have a close association with theenterprise as producers or consumers of its products or services, oras its employees.Cooperatives may take the form of companies limited by shares orby guarantee, partnerships or unincorporated associations.Cooperatives often share their earnings with the membershipas dividends, which are divided among the members according totheir participation in the enterprise, such as patronage, instead ofaccording to the value of their capital shareholdings.
Cooperatives Amongst the Asias largest milk co-operative, Gujarat Co-operative MilkMarketing Federation (GCMMF) selling dairy products under the brand ‘Amul’.
CooperativesCooperatives are typically based on the cooperative values of "self-help, self-responsibility, democracy and equality, equity andsolidarity" and the seven cooperative principles:> Voluntary and open membership> Democratic member control> Economic participation by members> Autonomy and independence> Education, training and information> Cooperation among cooperatives> Concern for community
CooperativesCooperatives are dedicated to the values of openness, socialresponsibility and caring for others. Such legal entities have a rangeof social characteristics. Membership is open, meaning that anyonewho satisfies certain non-discriminatory conditions may join.Economic benefits are distributed proportionally to each memberslevel of participation in the cooperative, for instance, by a dividendon sales or purchases, rather than according to capital invested.
Types ofCooperative governanceRetailers cooperative:A retailers cooperative (known as a secondary or marketingcooperative in some countries) is an organization whichemploys economies of scale on behalf of its members to receivediscounts from manufacturers and to pool marketing.It is common for locally owned grocery stores, hardwarestores and pharmacies. In this case the members of thecooperative are businesses rather than individuals.
Types ofCooperative governanceWorker cooperative:A worker cooperative or producer cooperative is a cooperative,that is owned and democratically controlled by its "worker-owners". There are no outside owners in a "pure" workerscooperative, only the workers own shares of the business, thoughhybrid forms exist in which consumers, community members orcapitalist investors also own some shares.
Types ofCooperative governanceIn practice, control by worker-owners may be exercised throughindividual, collective or majority ownership by the workforce, orthe retention of individual, collective or majority voting rights(exercised on a one-member one-vote basis).A worker cooperative, therefore, has the characteristic that themajority of its workforce owns shares, and the majority of sharesare owned by the workforce.Membership is not always compulsoryfor employees, but generally only employees can become memberseither directly (as shareholders) or indirectly through membershipof a trust that owns the company.
Types ofCooperative governanceVolunteer cooperative:A volunteer cooperative is a cooperative that is run by and for anetwork of volunteers, for the benefit of a defined membership orthe general public, to achieve some goal. Depending on thestructure, it may be a collective or mutual organization, which isoperated according to the principles of cooperative governance.The most basic form of volunteer-run cooperative is a voluntaryassociation.
Types ofCooperative governanceThe cooperation between Young Biologist AssociationNGO and Lets do it! World international ecological movement hasbecome the basis for establishment of the “Let’s do it!Armenia” movement in Armenia.This year, this movement aims to carry out the volunteer initiative“Armenia Without Garbage” which involves a number of activities ,cleanup campaign, seminars etc. The basis of the worldwidemovement “Lets Do It! World” is the big cleanup (Lets do it!2008) organized in Estonia in 2008, during which more than 50 000volunteers were able to clean up Estonia from 10,000 tons ofwaste.
Types ofCooperative governanceSocial cooperative:A particularly successful form of multi-stakeholder cooperative isthe Italian "social cooperative", of which some 7,000 exist."Type A" social cooperatives bring together providers andbeneficiaries of a social service as members."Type B" social cooperatives bring together permanent workersand previously unemployed people who wish to integrate into thelabor market.
Types ofCooperative governanceSocial cooperative:Social co-operatives exist to provide social services such as the careof children, elderly and disabled people, and the integration of unemployed people into the workforce.In countries such as Sweden and Britain they exist without anyspecial legislation, while elements of the Italian model have beenlegislated for in Belgium and Poland.
Types ofCooperative governanceConsumers cooperative :A consumers cooperative is a business owned by its customers.Employees can also generally become members. Members vote onmajor decisions and elect the board of directors from amongsttheir own number.The first of these was set up in 1844 in the North-West of Englandby 28 weavers who wanted to sell food at a lower price than thelocal shops. A well known example in the United States isthe REI (Recreational Equipment Incorporated) co-op, and inCanada (Mountain Equipment Co-op).
Types ofCooperative governanceBusiness and employment cooperative:Business and employment cooperatives (BECs) are a subset ofworker cooperatives that represent a new approach to providingsupport to the creation of new businesses.Like other business creation support schemes, BECs enablebudding entrepreneurs to experiment with their business ideawhile benefiting from a secure income. The innovation BECsintroduce is that once the business is established the entrepreneuris not forced to leave and set up independently, but can stay andbecome a full member of the cooperative.
Types ofCooperative governanceBusiness and employment cooperative:The micro-enterprises then combine to form one multi-activityenterprise whose members provide a mutually supportiveenvironment for each other.BECs thus provide budding business people with an easy transitionfrom inactivity to self-employment, but in a collective framework.They open up new horizons for people who have ambition but wholack the skills or confidence needed to set off entirely on their own– or who simply want to carry on an independent economic activitybut within a supportive group context.
Types ofCooperative governanceNew generation cooperative:New generation cooperatives (NGCs) are an adaptation oftraditional cooperative structures to modern, capital intensiveindustries. They are sometimes described as a hybrid betweentraditional co-ops and limited liability companies.They were first developed in California and spread and flourishedin the US Mid-West in the 1990s.They are now common in Canadawhere they operate primarily in agriculture and food services,where their primary purpose is to add value to primary products.For example producing ethanol from corn, pasta from durumwheat, or gourmet cheese from goat’s milk.