Types of Businesses

• Private enterprises


  Businesses owned and operated by private individuals and groups and whose main aim lies in profit making
• Publicly owned businesses


  Owned and controlled by the state/government
• Sole Tradership


  A small business owned by one person, i.e. the proprietor sources all the capital to start the business. This type of business may be operated by the owner alone or he may employ several persons.
• Partnership


  An association of two to twenty persons who are in business together with the view of making a profit
• Ordinary partnership


  • May have general or active partners who are involved in the day-to-day operations of the business or sleeping/dormant partners who invest capital in the business but doesn't take an active role in it. All partners have unlimited liability.
• Limited partnership


  • Partners have limited liability status. However, at least one partner must have unlimited liability.
• Cooperative


  A form of business that is owned and controlled by a group of persons who have common interest and is geared towards mutual benefits for its members
• Company


  A form of business organisation that is a separate legal entity from its owners. The term incorporated is also used i.e. the company can sue and be sued.
• Private Limited Company


  No less than two (2) and no more than fifty (50) persons are needed to form the company
• Public limited company


  A business that is legally separate from its owners, that is, it exists independently from its owners. Also called a joint stock company.
• Conglomerate


  A group of companies coming together which are involved in the production of unrelated goods and services. Conglomerates come into existence as a result of mergers and takeovers.
• Multinational


  An enterprise that has subsidiaries or branches in more than one country. The headquarters (parent company) will be located in the home country where the decision-making is controlled with such decisions being implemented by foreign subsidiaries.
• Franchising


  A marketing system based on a legal arrangement that permits one party – the franchisee – to conduct business as an individual owner while abiding by the terms and conditions by the second party – the franchisor.
• Nationalized industries


  Firms that were once owned and operated privately, but have now been taken over by the government through a process called nationalization.