Types of Business Organisation

Types of Business Organisation

Sole Proprietor

Partnetship

Corporations

Franchise

A business organization owned and controlled by one person. Sole traders can employ other workers, but only he/she invests and owns the business

A partnership is a legal agreement between two or more (usually, up to twenty)people to own, finance and run a business jointly and to share all profits.

These companies can sell shares, unlike partnerships and sole traders, to raise capital. Other people can buy these shares (stocks) and become a shareholder (owner) of the company.

The owner of a business (the franchisor) grants a licence to another person or business (the franchisee) to use their business idea – often in a specific geographical area.

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