Types of Ownership
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately-owned corporations, cooperatives, partnerships, or sole proprietorships.
Private Limited Company (Ltd)
A small to medium-sized business that is often run by the family or the small group who owns it. The owners and managers are only liable for the business up to the amount they have invested in the company, and are not liable for the debts incurred by the company unless they have signed a personal guarantee.
Public Limited Company
A business with limited liability, and a wide variety of shareholders. The owners and managers are only liable for the business up to the amount they have invested in the company, and are not liable for the debts incurred by the company (unless they have signed a personal guarantee, which usually is not the case for a large corporation).
Unlimited Liability
A situation in which owners of a business are liable for all the debts that the business may incur.
Limited Liability
A situation in which the liability of the owners of a business is limited to the full, paid-up value of the share capital. In the United States and some other countries, a limited company is known as either a corporation or a limited liability company (LLC) .
Limited Liability Company (LLC)
A situation in which the liability of the owners of a business is limited to the full, paid-up value of the share capital. In the United States and some other countries, a limited company is known as either a corporation or a limited liability company.
Sole Proprietorship
A business owned by one person. The owner may operate on his own or may employ others. The owner of the business has total and unlimited personal liability of the debts incurred by the business.
Partnership
A partnership is a form of business in which two or more people operate for the common goal of making profit. Each partner has total and unlimited personal liability of the debts incurred by the partnership.
Cooperative Business
Cooperative businesses are often referred to as a co-ops. The cooperative business structure is for-profit, with limited liability, but with members of the co-op sharing decision-making authority. Co-ops normally fall into three types: (1) Consumer co-ops, (2) producer co-ops (common in agriculture) and (3) worker-owned companies. Co-ops are fundamental to the ideology of economic democracy.