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JP LOGAN and The Kingdom Global Business Network: Different forms of business ownership:
- Sole proprietorship: A sole proprietorship, also known as a sole trader, is owned by one person and operates for their benefit.
- The owner may operate the business alone or with other people.
- A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgements against the business.
- All assets of the business belong to a sole proprietor, including, for example, computer infrastructure, any inventory, manufacturing equipment and/or retail fixtures, as well as any real property owned by the business.
- Partnership: A partnership is a business owned by two or more people.
- Corporation: The owners of a corporation have limited liability and the business has a separate legal personality from its owners.
- Corporations can be either government owned or privately owned.
- They can organize either for profit or as not-for-profit organizations.
- A privately owned, for-profit corporation is owned by its shareholders, who elect a board of directors to direct the corporation and hire its managerial staff.
- A privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange.
- Cooperative: Often referred to as a “co-op”,
- a cooperative is a limited liability business that can organize for-profit or not-for-profit.
- A cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority.
- Cooperatives are typically classified as either consumer cooperatives or worker cooperatives.
- Cooperatives are fundamental to the ideology of economic democracy.
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