There are several types of business ownership like franchises, solo proprietorships, private limited companies, partnerships, public limited companies, cooperative business enterprises etc. The main difference between these types is the amount of ownership rights that one gets in the new establishment.
Different forms of business ownership:
According to the concept of solo proprietorship the particular business is owned by a single individual and all the related business decisions are taken by the person.
Franchise is one of the newest forms of business ownership. It is very much in vogue nowadays, especially in the United States of America.
In case of a franchise, the owner gets the right to market and sell the products of another business entity that has already established itself in the market.
Private Limited Company
Private limited companies are mainly small or medium sized business enterprises. They are normally owned by a particular family or by a small group of businessmen and the ownership rights are divided among these owners. All the business decisions are subjected to the approval of all these owners or at least the majority of these owners.
Partnership is a type of business ownership where two or more people shares the ownership of the company and the profits or losses are equally divided among these owners. All of them are motivated by the common goal.
Public Limited Company
The public limited companies are a type of business ownership that has very little amount of liability. These companies have a lot of shareholders. In the United Kingdom the term public limited company means any company that has share capital of more than fifty thousand pounds.
Cooperative Business Ownerships
The cooperative business ownerships work by following a cooperative business model. These companies have limited liabilities. The common goal of the members, as in the case with partnerships, is making profits. All the members have the right to play a significant role while taking business decisions.