A business is an organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. Businesses can be privately owned, not-for-profit or state-owned. Business also can have a number of different types of owner depending on the aims and objectives of the owners.
There are different types of Business organization. The main types of Business organization are as follows. 1)
- Most small business started out a sole proprietor. There are usually owned by one person. (An individual who has day-to-day responsibility for running the business) - There are no complicated paperwork is required to set up a sole proprietor business. Decisions can be made quickly as well as close contact can be kept between customers and employees. 2)
- consists of two or more individuals which may be a small business or large business such as an accounting firms that may have dozens of partners. - Partners should have a legal agreement that sets how decisions will be made, how profit will be shared. Partners can share skills and workload, and it may be easier to raise the capital needed. 3)
Joint stock company
- Private Limited: form by at least 2 individuals, total member of companies cannot exceed 50, required to use “Private Limited” after company name. - Public Limited: Minimum of seven members required to set up this business, no restriction of maximum number of members, must have minimum paid up capital of BND100k 4)
Non- profit organization
-A non-profit organization is a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers. -They can take the form of a corporation, an individual enterprise (for example, individual charitable contributions),...
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