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Business types, activities and ownership.

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What is Business? Business can be defined as the involvement in the exchange of goods and services for money or personal assets. There are different types of businesses as seen below; Types of Businesses There are seven different types of businesses namely; 1. Local Business: This is a small business usually owned by someone within the community. It can also be said to be a company that give goods and services to the local population. The term ?Local Business? can also be used to describe a franchise or corporate branch that operates in a local area. Businesses like this can be found around our areas. Examples of such businesses are; Mace, Halal Meat, a music shop, the barbers shop etc. 2. National Business: This is a process in which a business company with formation services and advice with both speed and accuracy. Examples of such business are car companies, McDonalds etc. 3. International Business: This is the exchange of both goods and services between individuals and businesses in more than one country. ?International Business? is a term which is used collectively to describe all types of commercial transactions. ...read more.


Examples are; banking, hair cut and teaching etc. Business Purposes The main purpose of a business is to fill a need, money can come afterwards. There are other purposes which are; 1. To satisfy customers needs 2. To maximise profit Types of Business Ownerships There are seven types of business ownerships; Sole-trader: This is a small business owned and managed by one person. In this business the decisions are made by its owner alone. The owner of the business can employ people but they are not involved in the control of the business. It has unlimited liability. Examples are; small shops, cleaners, barbers, electronics etc. Partnership: This is a business that can be owned and managed by 2-20 people. All partners are involved in decision making. The profit made is shared amongst themselves. It is also an unlimited liability. Examples are; doctors, solicitors, dentist etc. Private Limited Companies (PLC): This is a company that provides limited liability to their shareholders but places certain restrictions to the ownership. Public Limited Companies (LTD): This is a type of company in which the shares can be offered for sale to a general public and members. ...read more.


Such business is called partnership. In both the sole-proprietorship and partnership businesses the owners have unlimited liability for any debts that their business may incur in the process of carrying out their business. Furthermore, a profit making business an be called a corporation. A corporation is a business with a limited liability. In law such businesses are said to be a legal person, different from its owners. They can be owned by the government or individuals. A corporation that is privately owned calls the owners shareholders, who appoints a board of directors to run the business. The board appoints managers who run the business day to day. Non-profit Businesses Non-profit businesses, also known as non-profit organisations are businesses set up purely for charity purposes. The shareholders from this type of business are not allowed to benefit from the business financially. Most money they earn is used to run their business. In return, they seek tax exemption since they are working for charity. Examples of such businesses include the Red Cross, The Salvations Army, Foundations named after their founders, and set up for one form of philanthropy or the other. Churches can also be included in this category, as well as trade associations like the Chambers of Commerce. ...read more.

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