ethics pt.2

• SOLE PROPRIETORSHIP These business are owned by one person who usually has day-to-day responsibility for running the business operations.
• PARTNERSHIP A formal arrangement by two or more parties to manage and operate a business and share its profits.
• General Partnership – partners are personally liable for the firm’s and debts & liabilities.
• Limited Partnership – At least one partner has unlimited liability. The other partners have limited liability.
• Limited Liability Partnership – partner’s personal assets can’t be used to recover debt’s. They aren’t shielded for personal acts.
• CORPORATION - It is a legal entity that is separate and distinct from its owners. Has a life of its own and does not dissolve when ownership changes.
• COOPERATIVE People-centered enterprises owned, controlled and run by and for their members to realize their common economic, social, and cultural needs and aspiration.
• CORPORATE GOVERNANCE The system by which companies are directed and controlled by the management in the best interest of the shareholders and other ensuring greater transparency and better and timely financial reporting.
• SHAREHOLDERS – Those that own the company
• DIRECTORS – Guardians of the company’s assets for the shareholders
• MANAGERS – they are the ones who used the company’s assets
• ACCOUNTABILITY – the obligation and responsibility to give an explanation or reason for the company’s actions and conduct.
• FAIRNESS – refers to equal treatment, for example shareholders should receive equal consideration for whatever shareholdings they hold.
• TRANSPARENCY – shareholders should be informed about the company’s activities, what it plans to do in the future and any risk involved in it’s business strategies.
• INDEPENDENCE – Avoidance of being unduly influence by a vested interest and to being free from any constraints that world prevent a correct course of action being taken