i) Limited liability joint stock company.


  • Many people (shareholders) provide capital in varying amounts.

  • Shareholders receive a share of the profits in proportion to the amount they have invested.

  • The shareholders financial responsibility to the company is limited to the value of the shares they own.

  • Other property held by the shareholders may not be taken to cover claims by the company’s creditors.

  • There are two types, public and private.

ii) Co-operative.


  • Membership organizations that must have a minimum number of members.

iii) Sole trader.


  • A single person company with few legal requirements making it easy to set up.

  • The owner provides the capital and bears all the risk.

  • The owner also controls the whole business and takes all the profit.

iv) Charitable institution.


  • Must be legally registered as a charity.

  • Usually benevolent and attract the sympathies of potential donors.