Business functions Essay Example | Topics and Well Written Essays - 1500 words - 1

Business functions - Essay Example They become partners for running the business efficiently. For starting a partnership business all the partners needs to sign different legal agreements. By this the partners contributes money, divides profit and design different business operation or activities which will be under their control. Partnership business can be of medium size or big. The owners of this business are not personally liable for any business losses or credit. Private limited company or business is a voluntary organization. This type of business can have more than one owner but not more than fifty. This business has proper legal existences. For starting a private limited company the owners have to undergo through different legal formalities. The business has to be registered under company act. Shareholders of these companies are its owners. For performing its business activities private limited company has to follow different legal rules and regulation of the country where it is operating its business. The company whose shares are sold and purchased in stock market is known as public limited company. Any people can purchase and sell share of public limited company. This type of company strictly follows legal rules and regulations of business. The company needs to disclose its financial position to its investors for determining the value of its shares. Public limited company can or cannot be listed in stock exchange. Many people are the owners of this type of company. In unlimited liability business, the owner of company has unlimited liability of all debts and credits of business. Another name of unlimited liability company is private unlimited company. It is hybrid type of business which can be run with or without share capital. The shareholders of unlimited liability company have too many non limited obligations for meeting business requirements. The partners or shareholders of this company accept all these unlimited liabilities to avoid double taxation