Trading of services and (or) goods to consumers by an organization is known as a business or a firm. Business is owned mostly by privately to exchange goods to customers for money, goods or services. Many people owing business is referred to a company, it may running in non-profit. Particular organization or full market sector refers by business. Business ownership is of different forms such as sole proprietorship, partnership, cooperative and corporation.
Forms of ownership and their roles & different types
Sole proprietorship or sole trader is a form of business owned by single person only for his benefit. With the help of other people the owner operates the business. He is having full authority in determining operating cost; he is the one and only decision maker for all in business. All assets such as manufacturing equipment, inventory, fixtures, building, computer infrastructure etc. belongs only to the sole proprietor who owing the business. Two or more people owing a business are a partnership. Unlimited liabilities go to each partner in partnership business. Profit partnership is of three types as limited partnerships, general partnerships and limited liability partnerships. Owner and business have different legal personality in corporation, limited liability go to owner of corporation.
It may privately owned or government-owned and run for profit or non-profit purposes. Share holders owns privately profit corporation where as managerial staffs are elected by board of directors appointed by share holders. A profit privately owned corporation is held by privately or publicly in which stock exchange is used to list trader shares. Cooperative also known as Co-op is a form of business runs for profit or non-profit and gets limited liability. It is classified typically as two type worker cooperative or consumer cooperative. It is considering as economic democracy ideologies fundamental. A major difference between corporation and cooperation is corporation has share holders where as cooperation has members.
Various types of classification are there in business. Financial business such as banking generates profit to companies through capital management and investment. Production of raw materials (minerals or plants) is doing by mining and agriculture business. Developing, selling and renting properties of land, homes and buildings termed as real estate business. Delivering goods for fee to destinations is doing by transportation business. Provision selling is a type of business which can do as whole sale or retail.
Things to be do before starting business
A subject which helps one to run business effectively and efficiently is management. Its major branches are marketing management, financial management, production management, human resource management, operations management, informational technology management and strategic management. Employing managers who studied the above mentioned management helps owner to run their business successfully and profitably. Basic skill needed for a person to start-up business is risk taking and innovation. Let’s discuss about the steps to start a business in step by step process. Good business plan writing, proper training and assistance about business, right business place, funding needs to start business, legal structure determination, business name registration, Tax identification number getting from IRS, Local and state tax registration, Permit and license and eligible employees hiring.