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There are a number of types of business unit:
Sole Proprietorship: a business owned by
one person. The owner may operate on their 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: (often referred to
as a Co-Op business or Co-Ops) use a cooperative business
structure: for-profit, limited liability, but with members
of the co-op share decision-making authority. Co-Ops normally
fall into three types: consumer co-ops, producer co-ops (common
in agriculture) and worker-owned companies. Co-Ops are fundamental
to the ideology of Economic democracy.
Limited Companies :
Private Limited Company (Ltd): a small to medium sized business
that is often run by the family or the small group who own
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.
Commercial Law and Other
Regulation:
Most commercial transactions are governed by a very detailed
and well-established body of rules that have evolved over
a very long period of time, it being the case that governing
trade and commerce was a strong driving force in the creation
of law and courts in Western civilization.
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