Memorandum of Association
Types of Business Organisations
When we start to define a company it can be defined as generally a form of business organisation. In the legal field, a company is specifically a corporation, or less commonly, an association, partnership or union that carries on a commercial or industrial enterprise. Generally a company may be a corporation, partnership, association, joint stock company, trust, fund or organised group of persons, whether incorporated or not and (in an official capacity) any receiver, trustee in bankruptcy or similar official or liquidating agent for any of the foregoing. More specifically we can state a company as either one of four distinct business organisations, Sole Trader, Partnership, Private company and Public company.
Sole Trader
A sole trader or a sole proprietor is a type of business entity which legally has no separate existence from its owner. All business debts are the debts of the owner. A sole trader essentially means a person does business in his or her own name and there is only one owner. An entrepreneur may opt for soul trader status due to the little additional work and the informal organisational structure to set u the business. In most cases for a soul trader there are no legal formalities to form or dissolve a business. A sole trader entrepreneur would be most suited for a small business such as a corner shop or a butchers but this would not be suitable for large scale investment as the entrepreneur does not have the advantage of raising capital through shares and bank finances. Hiring and firing employees can also become quite difficult. This form of business will have unlimited liability, therefore, if the business is sued, the sole trader is personally liable. The life span of a business is also uncertain. If the owner decides not to have the business or dies, the business ceases to exist.
Partnership
A partnership can be described as a relationship which subsists between persons parrying on business in
When we start to define a company it can be defined as generally a form of business organisation. In the legal field, a company is specifically a corporation, or less commonly, an association, partnership or union that carries on a commercial or industrial enterprise. Generally a company may be a corporation, partnership, association, joint stock company, trust, fund or organised group of persons, whether incorporated or not and (in an official capacity) any receiver, trustee in bankruptcy or similar official or liquidating agent for any of the foregoing. More specifically we can state a company as either one of four distinct business organisations, Sole Trader, Partnership, Private company and Public company.
Sole Trader
A sole trader or a sole proprietor is a type of business entity which legally has no separate existence from its owner. All business debts are the debts of the owner. A sole trader essentially means a person does business in his or her own name and there is only one owner. An entrepreneur may opt for soul trader status due to the little additional work and the informal organisational structure to set u the business. In most cases for a soul trader there are no legal formalities to form or dissolve a business. A sole trader entrepreneur would be most suited for a small business such as a corner shop or a butchers but this would not be suitable for large scale investment as the entrepreneur does not have the advantage of raising capital through shares and bank finances. Hiring and firing employees can also become quite difficult. This form of business will have unlimited liability, therefore, if the business is sued, the sole trader is personally liable. The life span of a business is also uncertain. If the owner decides not to have the business or dies, the business ceases to exist.
Partnership
A partnership can be described as a relationship which subsists between persons parrying on business in