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.