Business Ownership.

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(E1) Business Ownership

There are many ways in which business can be organized. It can be from a small one-man business to a multinational organization. The business ownership is mainly divided into different sectors. In this part I am going to explain about two types of business ownership.

1. Private limited company

2. Public limited company (plc)

Private limited company

The limited company is fast becoming one of the most common forms of business organization. When a small business expands there is need for extra capital. The proprietors may start the business as a limited company just to obtain the benefits of limited liabilities. The partners may decide to turn the business into limited company to raise this capital. A limited company is a separate organization in law from its shareholders and directors.

The main points of private limited companies are:

* The name of the company must end with the word 'limited'.

* There is no limit to number of shareholders.

Advantages

1. Limited company can continue even after the owner dies.

2. With limited liabilities company is able to attract capital from public.

3. The founder