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There're three basic forms of ownerships,the sole proprietorship,partnerships and limited companies.
1.Sole proprietorship
(Characteristics)
1.owner:1(sole-prpprietor)
2.No legal separation identity:If the company is sued,owners have to pay all legal charges
3. Unlimited liability:Owners are liable for all debts
4.Small scale business
5.Owners receive all profits the company has earned and assume all risks
(People in charge)
Managed by sole proprietor
(Capital resources)
1.Personal savings of owners
2.Retained profits
3.Loads from banks,relatives and friends
(Advantage)
1.Easy set up process:Apply the business registrature certificate to business registrature office of inland revenue department
2.Easily transfer ownership
3.Have a closer relationshipw ith customers and employees
4.Flexible and efficient operation
5.Low set up costs
(Disadvantage)
1.Less time to rest
2.Burden of unavoidable costs
3.Lack of skills
4.Lack of capital sources
5.Lack of continuity
6.Not easy to compete with other big companies
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2.Partnerships
(Characteristics)
1.owner:Partners(2-10)
2.No legal separation identity
3.Unlimited liability
4.small scale of business
5.Profits are shared by partners according to profit and loss ration set up in the partnership agreements
(Capital sources)
1.Loads from bank
2.Partners' persoanl saving
3.Retained profits
(People in charge)
Decisions are made by partners
(Advantages)
1.Easy set up process(the same as sole proprietorship)
2.More capital sources
3.Risks can be shared among partners
4.Divisions of labour
(Disadvantages)
1.No separate legal existences
2.Unlimited liability
3.lower opertion efficiency
4.Bound by decisions of partners
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3.Limited companies
1.Owner:Shareholders
-private limited:1 to 50
-Public limited:1 to unlimited
2.Legal separation identity
3.Limited liability:the shareholders only lose their investment on the share of company if the company suffers lost
4.Companies' names are restricted(must have"limited" or "Ltd"
5.Large scale of business
6.Separation of management and ownership
7.Shareholders can receive dividend if companies earn profits
(Capital sources)
1.Loads from banks
2.Retained profits
3.Personal saving of shareholders
4.Issuing shares of shareholders
(People in charge)
Director who is selected by shareholders would manage the company
(Advantages)
1.Easier to raise mmoney compared to sole-proprietorship and partnership
2.larger scale of companies
3.limited liability
(Disadvantages)
1.lack of efficiency as decisions are hardly made as the company is complex and large
2.Complicated set-up process:register the company at Companies Registry.Hand in the Articles of Association and Memoorandum of Association at the same time,apply the business registration to Business registration Office of Inland Revenue epartment after receiving the certificate of incorporation
What else can I help you with?
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There are several types of business ownership, including sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). A sole proprietorship is owned by a single individual, while partnerships involve two or more people sharing ownership and responsibilities. Corporations are separate legal entities that protect owners from personal liability, and LLCs combine features of partnerships and corporations, offering flexibility and limited liability. Each type has its own legal implications, tax treatments, and management structures.
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What are the ownership types in general aviation?
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