Before starting any venture it is very important to figure out how the organization is going to build its chain of command. Basically no business is made for short time and for this reason a very careful measurement should be done on ownership. Choosing the appropriate ownership in an organisation depends on nature of business, type of authority, delegation of work, span of organization, type of product, production and operation, legal procedure, financial matters and so on. The basic types of ownership in a business are:
•Sole Proprietorships: This type of business is operated by only one owner. He or she assumes the entire responsibility and financial claims for the business. •Partnerships: It is a business formed by a group of people for mutual profit and liability is usually divided in accordance with capital invested. •Government: Government can have ownership in different areas like centrally or by local government. •Private Limited Company: Private limited companies are quite similar as partnership business and they can offer shares to family members but they cannot make public offering. •Public Limited Company: It is the most advantageous and at the same time complicated form of ownership. It has its own legal entity, needs huge legal requirement, can make public offering and the liability is limited to share capital.
Types of Hotel Ownership
Different organization demands different form of ownership. In the hospitality industry it is better to have either sole proprietorship or partnership. The reason behind choosing these two types of ownership is the nature of hotel business. This business is not like something giant production or supply chain oriented. On the other hand government ownership discourages creativity. So if it is managed by one person or a group of people then it will be easier to operate rather than panicking with legal papers....