2. Types of Business Ownership
๏Who is your boss?
๏Who is your bossโs boss?
๏Can you become part owner?
Forms of business ownership and type
of business help describe how the
business is organized and run.
3. 4 Types of Ownership
1.Sole Proprietorship
2.Partnership
3.Corporation
4.Co-operative
4. 1. Sole Proprietorship
๏Owned by one person, who performs
most roles and owns everything.
๏Owner gets all profits, takes all the
losses โ called unlimited liability.
๏Easiest and least expensive to set up.
๏Easiest for tax purposes โ income
recorded under personal income.
5. 1. Sole Proprietorship
Advantages
๏ Owner makes all the decisions-
hours of business, whom to hire.
๏ They are their own boss.
๏ Any profits belong to the owner.
6. 1. Sole Proprietorship
Disadvantages
๏ The owner may lack the ability to buy the
right supplies, do accounting etc.
๏ It the business loses money, so does the
owner.
๏ Creditors can claim the personal
belongings of the owner.
๏ Long hours.
๏ If the owner is ill the business doesn'tโt
open.
7. 2. Partnerships
๏Two or more individuals share costs and
responsibilities.
๏Terms of partnership recorded in
partnership agreement.
๏ โSilentโ partners- partners that usually
will front a lot of capital, but do not want
to participate in business decisions โ
receive profits in return.
8. 2. Partnerships
๏Two types of Partnerships can exist in a
business:
๏General partnership
๏All partners have unlimited liability
(can be held responsible for the other
partnerโs business related debts.)
๏Limited partnership
๏Partners have limited liability (only
responsible for their share.)
9. 2. Partnership Advantages
๏ Two or more people share decision
making process.
๏ One person may be better at one task
than the other partner.
๏ Sometimes easier to borrow money if two
people are involved.
11. 3. Corporation
๏ Business with a legal status.
๏ Can be as small as one person, or
multinational.
๏ Some owned by individuals, families,
small groups.
12. 3. Corporation
๏ Ownership often broken into small units,
shares, which are sold through a stock
exchange.
(ie. Infosys, Wipro, reliance, tata, HDFC)
โ a publicly traded corporation
๏ Those who buy: shareholders.
13. 3. Corporations
๏ Since there are many owners, a board
of directors runs corp.
๏ Shareholders have limited liability, not
responsible for debts.
๏ Get profits as dividends.
14. 3. Corporation ๏ TYPES
1. Private Corporation
๏ Only a few people control stock.
๏ Publically traded (Tata, Wipro, HCL etc)
2. Public Corporation
a public corporation is a business that's created by the
legislature or an act of parliament, and its name is notified in
the official gazette of the state or central government. There are
many businesses that were created in India by the government
in the form of a service organization, including: BSNL, HAL, FCI,
ONGC, LIC, SBI
15. 4. Cooperatives
๏ A co-operative society is a voluntary association of
individuals having common needs who join hands for the
achievement of common economic interest. Its aim is to
serve the interest of the poorer sections of society
through the principle of self-help and mutual help. The
main objective is to provide support to the members.
Nobody joins a cooperative society to earn profit. People
come forward as a group, pool their individual resources,
utilise them in the best possible manner, and derive
some common benefit out of it.
16. List of Co-operative societies in India
๏ Amul
๏ Horticultural Producersโ Cooperative Marketing and
Processing Society (HOPCOMS)
๏ Indian Coffee House
๏ Indian Farmers Fertilizer Cooperative Limited (IFFCO)
๏ Kerala Dinesh Beedi workersโ Central Co-op Society
๏ Karnataka Milk Federation(KMF)
๏ Kerala Co-operative Milk Marketing Federation (KCMMF)
๏ Pratibha Mahila Sahakari Bank
๏ Orissa State Cooperative Milk Producersโ Federation
๏ Anyonya Co-operative Bank Limited
