Business Forms Available Under UK Law Essay Example | Topics and Well Written Essays - 1000 words

Business Forms Available Under UK Law - Essay Example Characteristics †¢ The sole trader possesses all the assets of the business. †¢ He or she is directly liable to any debts incurred by the business. †¢ The business is easy to dissolve since no formalities or paper works are required. Examples of some of the most known sole trader business include the Donald Trump organization, owned and managed by Donald trump who is also the founder of Trump entertainment Resorts. b) Company This is an association of individuals united by a common objective and normally come together with the intention of achieving specific goals. Companies are in two major categories; private and public. The difference between these two is that whereas public companies have the right to sell their shares to the public, private companies do not and neither do they trade their shares in stock exchange (Liu Post, 2014). Characteristics of public companies †¢ Have the right to sell shares to the public. †¢ Can trade shares in the stock exchange. †¢ Have a limited liability status. Characteristics of private companies †¢ Do not trade shares in stock exchange. †¢ Only requires a maximum of fifty members. †¢ Normally run and owned by family members and relatives Examples of public companies include Microsoft and IBM while private companies comprise of Cargill and Publix. This is a single business whereby two or more persons share ownership (BIS, 2013, p. 3). In this business, it is a requirement that each member participates in the contribution of all aspects such as capital, skills and labor. Partnerships are in three categories; Joint ventures, General and limited partnerships.