Types of Business Organizations

shubhodeep prasanta das

An organization is a group of people or things, which are organized in a way that gives them the ability to act and behave as an entity. Organizations, like shubhodeep prasanta das, are created for many different purposes, such as the military and clubs.┬áHere are the types of business organizations that are used in today’s business world.

Cooperative

A cooperative is a business which is owned and run by the community members or associates. The members share in the profits and losses of the cooperative and also subject to salary reduction or increase. The Cooperative is like a nonprofit organization where the profit for each member will be shared among them. As an example, a farmer cannot have profits for sowing his crops because he has to feed his family. So, he allows sharing of profit with other farmers.

Unincorporated business

An unincorporated business is owned and operated by one person or a group of persons, but they don’t incorporate. But they are registered with the government and they have a limited liability. If a manager or person gets arrested then only his personal property is at risk and not the property of the company.

Sole Proprietorship

A sole proprietor is a business which is owned and run by only one person. The owner of the business has all the rights to use its property and makes all decisions. It is said that there are no bosses in this organization, but owners of each business have the right to run it.

Partnership

A partnership is an association of two or more people or organizations who join together in order to achieve profit making goals. The partnership is the legal agreement between the members. The partners have to agree on all the terms and conditions together. They have to work together to achieve the goals of the partnership.

Corporation

A corporation is a business or organization that has incorporated with the Government or with a recognized Stock Exchange. It has its own property, directors and shareholders etc. The corporation can also be owned by one person or by an unlimited number of people who work together in one unity.