Business is the initiative of a task with specific goal and objective .One person can also start the business or it can be started by a group of people. Based on the objectives of the business, the business is categorized. Common objective of the business is to earn the profit and to survive in the market for long duration. Business is measured by its competitors, number of employees, revenue generated, market value, number of branches, profit.
Sole trader Partnership: This is the type of the business in which only single owner exists with a number of employees .This is small scale business started with less investment and focus more on the employee satisfaction and the customer satisfaction . Hence there is only one owner therefore full dependency lies on one then the condition become critical in case of owner unavailability due to disease or death or any other emergency.Account or revenue related information are easy to manage but difficult to manage the finance related issues.
Partnerships: Business with more than one partner called as partnerships business. This type of business started by two or more than two people the ownership is divided among these members and all of these are known as owner of the business. They all contribute in equal amount for the high profit aim, they provide all the resources required for the business growth, they share their experience, skills to the growth of the same business by keeping the same objective in mind. They all have equal shares of the business and also share the profit. This business has advantage in case of any loss,crisis,difficulty all these owners contribute to recover from the crisis and find the cause but in case if any one of the owner denies from the responsibility then the business may affect and can move into the competitor hand .
Co-operatives: There are three main types of cooperatives business that are retail cooperatives, Marketing or trader cooperatives and workers cooperatives. Cooperative is the autonomous association which is formed by the group of people to meet their social, cultural and economic needs (Cooperative).
Franchises: In this business one business known as Franchiser sales the right or gives the license to the another business known as Franchisee .Franchiser make it possible to run its own business in other parts of the country or in the world in order to increase the overall profit. For getting franchise from the franchiser franchisee need to invest in the business of franchiser and also require to share the profit with the franchiser of the business. By this way franchiser expands business in other parts and also earn the profit and name. Franchisee gets the proper knowledge about the business and resources required that are not available in the premises from the franchiser. Franchisee cannot keep the profit or revenue generated secret need to report to the Franchiser on the regular basis. One can start the business by taking the franchisee because one only take the franchisee of the well settled and reputed business in the market that reduces the risk of failure. Business like KFC, SubWay, Mac Donalds, Dominos etc are some examples of business who sell their franchisee to expand their business globally.
Public Sector: These business found to be more promising for the customers because there is no risk of fraud public sector businesses face less loss that leads to less fluctuation in the price of the product and services compare to the private businesses that cuts the job frequently and in case of any loss in the business raise the price of products and services In public sector there is job security too.
Private and Public Limited Company: Limited companies are those companies which are owned by the shareholders these companies appoint the director to take care of the company management and all the company related issues. Director of the company may be the shareholder of the company or the other person from outside the company with necessary skills and the knowledge. These companies are called limited because in case of any kind of loss these companies can recover only by means of the available business assests shareholders individual assests remain intact. If the shareholders are from general public then the limited company is known as public limited company(“plc”) or if these shareholders are selected then that company is known as private limited company .In Private limited company (“Ltd”) the source of finance is limited but all the confidential information related to company remain unavailable to the outside world whereas in public limited company all the shareholders that are general public have access to the company information hence it is less secure and has chances to compromise.
Organization of any business depends on the following factors:
Size of business: Any business is identified by its size and the scope. Small businesses are easily manageable whereas the large business require greater investment and partnerships
Tax: Some businesses have relaxation in the tax. Laws of taxes vary from business to business.
Sector: Business is public sector or private sector depends on who are the share holders of the business and who owns the business.
Disclosure: Some business require to disclose their data to all the share holders of the business. For security purpose or to keep data confidential from the business competitors it is important to know about to whom the information has to share or what information is made public. Businesses also have their own rules and regulation that all the persons involved in the business require to follow and implement also.
In this article different types of business , business factors and what are the measures of the business are discussed. Hence a good business depends only on the revenue generated and long term existence of the business in the market decides the reliability of the business .Business with single owner does not exist really in the market examples of this types of business are plumber, electrician etc .Therefore the business that involve the huge investment and more skilled shareholders grow faster in market comparatively.
Author: Poonam Kaushal
A blogger and passionate writer who always try to introduce new concepts to readers.Involved in blogging since 2014 and believe in “No pain No gain” if you have to achieve something then you need to work hard.Working as freelance blogger in many companies and also managing her own blog that you all know savenlike.com.