Not yet registered? Create a OverBlog!

Create my blog

A guide to different types of business

The definition of business can be described as an organisation which involves the exchange of goods and/or services to consumers for capital. There are many different business types from a sole trader, to a large, international business firm, who all provide different types of products and services depending on their primary business purpose. Read this article to learn more.

Different types of business

A private company limited by shares, is more generally known as a private limited company. This kind of business has shareholders who have limited liability and its shares are not available to the public. If a business was to get into financial difficulty, only the shareholders investments are lost. Shareholders will not lose any personal assets. A private company limited by guarantee is a not for profit organisation. Charities are just one example. These types of business often do not have shareholders, but members who act as the business guarantors. The guarantors contribute a small amount in the event that the company goes into liquidation. In a private unlimited company, creditors cannot take any personal assets from its members or shareholders. A public limited company is a business firm which sells shares to the public and can be listed on the stock exchange, although there is often no requirement for it to be listed. With any form of registered, limited company, it must be registered with the organisation Companies House in the UK.

Sole trader or partnership?

Sole tradership – The most easily set-up type of business and it generally consists of one person. There are however, business risks associated with sole tradership as creditors are allowed to take personal assets from the individual such as property and contents if the company gets into debt. A partnership not dissimilar to sole tradership but there are more people to consider. Any business profits which are made by the partnership are shared between the managers. It is often advisable that if entering a partnership, business owners draw up some form of legal contract, so that if any disputes arise, it is easier to come to a resolution.

Types of employee

There are three types of employee within a business organisation: Workers – a worker is someone who works under contract, with certain entitlements. Employees – This consists of the largest group of people within a workplace. The employee has more rights than a worker and will often have an employment contract usually, but not always in writing. Self-employed – The self-employed are able to choose their service, how it is delivered and how their business is managed. Rights and responsibilities change between different projects and work undertaken in accordance with the client and contracts are drawn up for each new commission.

Same category articles Business development

Where to buy printed banners

Where to buy printed banners

Printed banners can really make an event that extra bit more special. If you aren't the artistic type and can't face the prospect of making your own pull-up banner or pop-up display, you don't have to worry as there are numerous cheap signs options available to you. Read on for advice on buying printed banners.
Where can you design your own business logo online?

Where can you design your own business logo online?

Designing your own business logo online can save you time as well as money whether you want a full corporate logo, or just need a quick business logo to help you to create your own site.
How to make business cards

How to make business cards

For a business to be a successful, one of the requirements is usually advertising or marketing. One way to highlight your business may be is through business cards. It is always a good idea to have a supply of these with you wherever you may be - that way you can easily market your business effortlessly. Here are two methods to design your own business cards at very little cost to you or your business.
What is a Limited Liability Company?

What is a Limited Liability Company?

Limited Liability Company's (LLC's) are increasingly becoming the most sought after business structure in most states. It provides, in essence, the flexibility of partnership with the limited liability of a corporation. Though the LLC is a bit more complicated to form then most other entities, it is usually well worth the work and time.