Types Of Business : Business

| A general partnership is comprised of a group of two or more individuals who enter into an agreement to start a business. The partners and the business are legally the same. The partners enter into an agreement called the articles of partnership and are typically equally active in the business and the business’s management, unless otherwise stated in the partnership agreement. All profits and losses are shared by the partners in a joint business venture.

Sole trader is where a business is run as an individual; so that all profits are their own after tax has been paid on them. Within a sole trader organisation it is possible to employ staff, as the sole trader only means that you own the business personally and do not actually have to work by yourself.

Partnership is a form of business organization where two or more parties come together to carry on a business or trade for mutual benefit. The partners share

Sole Trader – one owner of business (1 person who has legal responsibility) such as gardener, window cleaner, small retailer, and plumber

4. Differences between sole traders from that of limited companies in format of financial statements

Sole trader- A business which is started by one person and is financed by him but has full control of his business and gets to keep

Definition: Sole Trader is an organization keep running by one individual started. For instance, a hair parlor.

A sole proprietor is the most modest and common structure chosen to start a business (SBA, 2016). Someone who owns an independent business is usually a sole proprietor. They are no legal action needed to form a sole proprietorship. Sole proprietors are entitled to all profits and are responsible for all your business’s debts, losses and liabilities (SBA 2016).

The sole proprietorship is both the simplest and most common type of business operating in the United States today. Most businesses that are owned and operated by a single person take this form. Small business owners who have sole ownership of their business are automatically considered under this business type if they do not take steps to establish themselves as another type of business. The important feature of a sole proprietorship is that the law makes no division between the person, the sole proprietor, and the business. That is why one is held personally liable for any and all circumstances.

Types of partnership include a general partnership which has very active partners and assume responsibility for the firm. Limited partners include invest in a partnership but take limited risks of their assets as if the business fails they lose their investment but not their assets. “A silent partner is one who is known as a partner by the general public but who does not play an active role in the operations of the business” (Hodgetts & Kuratko, 2008). Someone who plays an active role in the business but may not be known by the public is a secret partner. A person who does not play a role in the business or known by the public is known as a dormant partner. A nominal partner is giving their name to be used to represent a partnership without investing or playing a role in the firm. “A limited liability partnership (LLP) is a relatively new form of partnership that allows professionals to enjoy the tax benefit of a partnership while avoiding personal liability for the malpractice of their partners” (Hodgetts & Kuratko, 2008).

General partnership is the type (created by oral or written contract) where each partner is actively involved in the company’s management. Each partner serves as agent of the other and has full authority to act for the company within the scope of its business operations. Each partner is also fully responsible for the debts of the business. Profits are equally shared between partners in general partnership.

This is one of the simplest ways of starting up a business. The term sole trader basically means “self-employed”. Therefore the business is owned and managed by one individual. There is an emphasis to inform HMRC of an individual’s intentions to become a sole trader, as they will have to complete and return a self-assessment tax return each year. There is also the fact that a sole trader will pay income tax and Class 2 / 4 National Insurance

The sole proprietorship is the simplest form of business organization. A sole proprietorship is a business that is owned by an individual who is solely responsible for all aspects of the business. The owner is personally responsible for all debts of the business, even in excess of the amount invested. The business and its owner are thus considered the same entity.

A company "Limited by shares" is that company which has shareholders, and the liability of the shareholders which is to be paid to the creditors of the company is limited .the personal things of shareholder are protected in the case of the company 's insolvency, but invested money as shares in the company will be lost. A company limited by share is type of a company hold under the laws of England, that of certain Commonwealth countries . It is a form of business orgnisation that is in an artificial creation of the law . It is legally recognized as a separate and distinct entity being independent of both its directors and members. Companies in Australia are ordered by ASIC (Australian Securities and Investment Commission). A company limited by shares has a nominal capital divided into shares of certain values and classes . the base of such a company is that liabilities of share holders is limited to any amounts unpaid on their

The sole trader is the owner, manager and controller of the business. He does not appoint specialists for various functions. He personally supervises various activities and can avoid wastage in