Entrepreneurship

What are the Types of Business

Types of Business

Before starting a new business, you should know about the different types of business entities. As you know that business is an activity of Trading Goods or providing services for the sole motive of to earn profit. It serves the considerable assortment of our needs in the public eye.

Types of business Entities by Ownership

  1. Sole Proprietorships

It is the simplest and easiest form of business, Which did not required any partner and legal formalities for starting the business. Every single person can start with an idea by investing money and run as one man show. Simple example of these types of business are common in our society, Like a store, a shop of hair dresser, retailer, wholesaler, Doctor, Advocate. Here one person come into trade with one’s investment or skill (Providing Services for profit motive). No legal formation requirement means, one need not any deed, registration to local authority, does not required any permission from government, tax authorities. Sole proprietorships Characteristics are simple one.

Usually it have a limited area of working and the growth and development is limited as compare to Partnership or Companies. Proprietor play within its skills, finance and area.

  1. Partnership

 

  1. Joint Stock Company
  2. Corporation

Types of Business Entities by Activity

  • Trading
  • Manufacturing
  • Services
  • Franchising
  • Multinational company

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