Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Ownership
UNIT 5
Evaluation Criteria
Start-up
1. Sole Proprietorship
Sole Proprietorship
Advantages
Simple to create
Single ownership
Least costly form
Less legal
formalities
No sharing of
profit /loss
Total decisionmaking
Easy to discontinue
Sole Proprietorship
Disadvantages
Unlimited personal
liability
Limited skills and
abilities
Feelings of isolation
Limited access to
capital
Lack of continuity of
business
2. Partnership
An association of two or more
people who co-own a business
for the purpose of making a
profit.
It is always better to insist in
written agreement ,to avoid
future litigation.
Partnership
Advantages
Easy to establish
Complementary skills
Division of profits
Larger pool of capital
Ability to attract limited
partners
Sharing if risks
Flexibility
Better decisions
Partnership
Disadvantages
At times,
unlimited liability
of at least one
Instability
Non transferability
of shares
Possibility of
conflicts
Formation of Partnership
Agreement Deed
Association of persons
Independent legal entity
Limited liability
Common seal
Transferability of shares
High degree of managerial skills
Publication of accounts
Merits
Demerits
On the basis of
Transferability of shares
PRIVATE
PUBLIC
Private Company
Public Comapny
Co-operative Organisation
A cooperative is an autonomous
association of people who voluntarily
cooperate for their mutual social,
economic and cultural benefits.
A jointly owned enterprise engaging
in the production or distribution of
goods, or the supplying of services,
operated by its members for their
mutual benefit.
It promotes honesty, openness, social
responsibility & caring for others.
Housing cooperatives
Retail cooperatives
Consumer cooperatives
Business and employment
cooperatives
Agricultural cooperatives
Cooperative Banking