Kinds of business organisation

      A business is an organization of material, human, financial

and informational resources that joined together for a specific

purpose – profit. Modern life is impossible without goods and

services people need. These needs are provided by the

businesses, companies and firm that make, buy or sell goods or

provide services.

         When we start a business we talk about setting up a

business. When a business has been established we talk about

being in business or running a business. To do business

means to trade or deal with a company or country. It is not easy

to run a business successfully. In case a company is not

successful it may go out of business.

         We cannot say that all businesses are organized in the

same way.

         In unlimited liability companies the owners are personally

and entiret liable for the debts of the company. This means they

may lose personnel assets if the company is in financial

difficulties.

Unlimited liability companies are subdivides into sole trader (a

form of business organization owned and run by one person) and

partnership (a business run be no less than two and no more

than twenty partners).

In limited liability companies the owners are liable for the

amount of money they have invested in the business.

Limited liability companies are subdivides into private limited

company and public limited company.

Private limited company is a company which has shareholders

(people who own capital of a company) but cannot offer its

shares to the public.

Public limited company is a private company whose shares can

be bought and sold at the stock exchange.