Standard Grade Business Management
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Standard Grade Business Management
This book will eventually encompass the following topics at Standard Grade level:
-Types of Business
Sole Proprietorship
A sole proprietorship is a business run by one person. This one person, known as a proprietor, has the advantage of being in control of the entire business, and having all the income of the business going directly to him or her. The downside of this is that a Sole Proprietorship is not taxed as a business entity, so all income of the business is taxed as personal income tax. Additionally, the proprietor has Unlimited Liability meaning that if the business goes under, and the assets of the business are insufficient to satisfy the debts of the business, the creditors can sieze the personal assets of the proprietor.
Partnerships
A partnership is a firm run by more than one person. These people are all known as partners of the company, and they have the advantage of sharing the losses, but have to share the profits too. The percentage of sharing looses and profits could be determined according to the partnershipagreement drawn between the partners, they vary from country to country. The partners make all decisions collectively, and each partner is responsible to the others for any decision he makes with relation to the business. Each partner, by the virtue of being a partner, represents the business and is expected to act in ways that won't be detrimental to the business.New Partners are added for their expertise. Partnerships are easy to form usually professionals lawyers, doctors and consultants form partnership to benefit from the expertise of each other.
Private Limited Companies
A private limited company too can have just two shareholders. However the shareholders of a private limited company could be limited to family members or friends. A private limited company is formed by registering the memorundum and articles of association with the local registar of companies. The shareholder liblity is limited to the authorised share capital. It is less complexed to form unlike a public limited company. The rules and regulations on the formation of a private limited comapny have to be checked out with your local chamber of commerce or registar of companies. The accounts of a private limited company have to be audited by independent auditors and board of director; they meet regularly to make decisions and they have Annual General meeting when all shareholders meet to discuss the wider managment issues of the company. But not as complex as the AGM of Public limited company.
[edit] What else is proprietorship?
Corporation
Limited Liability Corporation / Limited Liability Partnership
LTD
-Starting a Business organization -Accounting and Finance
-Marketing
-Human Resources
-Information Technology in Business the small company can evoluate in big coorporation.so from small company leaded by one person,small number of people who work for this company,this company may have more than one leader and bigger number of workers.hence this company will have bigger wide of product make.this company(coorporation)is lead by shares who will give from the partners.
