4 Different Types of Business Categories

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4 Different Types of Business Categories

Also known as an enterprise or a firm, a business involves the trading of materials or various types of services or even both to consumers, plans or models so that a business operation can take place on a continuous basis. A person’s main motive is to earn money by doing any sort of business and take out profit from it.The profit goes to the owner of the business or the one who has established the whole organization.

In today’s world, there are a number of categories of business which are run by different individuals, organizations or even states and they can be classified under different types according to the nature of work and the kind of people who run the company.

Type of Business Categories

Sole Proprietorship

Also known as independent contractors or freelancers, sole proprietors refers to that business category where individuals who own the company, run it themselves under their constant supervision.

Sole Proprietorship

An individual who wishes to start his own business should decide what kind of service or goods he wishes to sell, how many people he wants to employ, what kind of an office he is looking for and what will his annual income be. Being one of the simplest forms of starting a new business, it is also quite easy to dissolve a business of this type if expected profit is not met and the individual incurs a loss.

Corporate Business

A corporate business is such where a group of people get together to form a company or organization and the company has a different set of rights and liabilities which are not related to the individual himself.

Corporate Business

A corporate business is allowed to sell, buy and even own properties,make contracts and lease out property, bring in lawsuits, is supposed to pay taxes and can be punished with fines if needed. Such a business can exist forever as new members take the place of old ones.

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Partnership

Just like a corporate business,a partnership firm too owns a separate entity which does not relate to its shareholders or partners.In a partnership business, at least one of the partners takes the role of a General Partner as is fully responsible for the liabilities associated with the business.

partnership

A minimum of 2 shareholders are required for a partnership business to be established. The profit and loss which the company experiences, is equally divided amongst all the shareholders. However, the profit money is not retained in the business for future use.

Online Business

With the modern day technology, many people across the globe have started purchasing goods or services online in the comfort of their home. Online business refers to that kind of a business category where all the information, pricing and related details of the product are put up on the company’s website and the buyer logs on to the site to make his desired purchase.

Online Business

The payment is generally made through a credit card though many companies offer cash on delivery schemes. If you wish to start such an online company, you would have to first register your company and then create a website of your own.

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