The most common forms of private bu

The most common forms of private business organizations are sole proprietorships, partnerships andcorporations.

Sole Proprietorships

A business owned and controlled by one person is a sole proprietorship. Sole proprietorships are the oldest, simplest, and the most common of all types of business.

Because the financial resources available to one person often are limited, sole proprietors tend to be enterprises that require small amounts of capital to start and operate. Many doctors, dentists, lawyers, bakers, and beauticians organize as sole proprietors to provide professional services. Other services offered by sole proprietors include plumbing, carpentry, dry cleaning and lawn care. Many construction companies, small grocery stores, florists, other small retail stores, farms, real estate firms and insurance firms are also organized as sole proprietors.

Partnerships

A partnership is a business that is owned and controlled by two or more people. As in the case of sole proprietorships they are concentrated in businesses that require relatively small amounts of money to start and operate. Small retail stores, farms and construction companies are often organized as partnerships. People in service occupations, such as doctors, lawyers, accountants, and photographers, also form partnerships. Many of these partnerships may have started as sole proprietorships. A partnership begins when two or more people agree to operate a business together. Partnership can be general or limited. In order to avoid later conflicts, the partners usually formulate a written agreement called a partnership contract. A partnership contract outlines the contributions of partners, the distribution of profits and losses. It details the specific responsibilities of each partner and includes provision for adding or dropping partners and dissolving the partnership.

Corporations

A corporation is a business organization that is treated by law as if it were an individual person. A corporation can do everything that a sole proprietorship or a partnership can do. It can, for example, buy property and resources, hire workers, make contracts, pay taxes, sue others and be sued and produce and sell products. A corporation, however, is owned by stockholders. Stockholders are individuals who invest in a corporation by buying shares of stock. Stocks are the certificates of ownership in the corporation. Stockholders invest in a corporation in order to make a profit.

Types of Corporations.

A corporation may be either publicly owned or closed. A publicly owned corporation allows its shares to be purchased by anyone who chooses to invest in the business. Most corporations today are publicly owned. A closed corporation is owned by a limited number of shareholders. People outside of this limited group may not buy shares in the corporation.

Aims of Private Organizations

Profitability is the main aim of private organizations but it is important to realize that any business will have other aims. These include:

Survival: most of the time firms will not be worried about this. However, particularly in times of economic difficulty – such as recession – surviving will become an important short-term aim of the firm. In order to survive, the firm may have to make workers redundant and close some of its factories.Growth: not all firms want to

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The most common forms of private business organizations are sole proprietorships, partnerships andcorporations.Sole ProprietorshipsA business owned and controlled by one person is a sole proprietorship. Sole proprietorships are the oldest, simplest, and the most common of all types of business.Because the financial resources available to one person often are limited, sole proprietors tend to be enterprises that require small amounts of capital to start and operate. Many doctors, dentists, lawyers, bakers, and beauticians organize as sole proprietors to provide professional services. Other services offered by sole proprietors include plumbing, carpentry, dry cleaning and lawn care. Many construction companies, small grocery stores, florists, other small retail stores, farms, real estate firms and insurance firms are also organized as sole proprietors.PartnershipsA partnership is a business that is owned and controlled by two or more people. As in the case of sole proprietorships they are concentrated in businesses that require relatively small amounts of money to start and operate. Small retail stores, farms and construction companies are often organized as partnerships. People in service occupations, such as doctors, lawyers, accountants, and photographers, also form partnerships. Many of these partnerships may have started as sole proprietorships. A partnership begins when two or more people agree to operate a business together. Partnership can be general or limited. In order to avoid later conflicts, the partners usually formulate a written agreement called a partnership contract. A partnership contract outlines the contributions of partners, the distribution of profits and losses. It details the specific responsibilities of each partner and includes provision for adding or dropping partners and dissolving the partnership.CorporationsA corporation is a business organization that is treated by law as if it were an individual person. A corporation can do everything that a sole proprietorship or a partnership can do. It can, for example, buy property and resources, hire workers, make contracts, pay taxes, sue others and be sued and produce and sell products. A corporation, however, is owned by stockholders. Stockholders are individuals who invest in a corporation by buying shares of stock. Stocks are the certificates of ownership in the corporation. Stockholders invest in a corporation in order to make a profit.Типы корпораций.Корпорация может быть либо публично собственности или закрыты. Государственной собственности корпорации позволяет своих акций быть приобретены кем-либо, кто хочет инвестировать в бизнес. Большинство корпораций сегодня находятся в государственной собственности. АОЗТ владеет ограниченным числом акционеров. Люди за пределами этой ограниченной группы не могут покупать акции корпорации.Цели частных организацийРентабельность – основная цель частных организаций, но важно понимать, что любой бизнес будет иметь другие цели. К ним относятся:Выживание: большинство фирм времени будет не беспокоиться об этом. Однако особенно в периоды экономических трудностей – таких, как рецессия – выживание станет важной краткосрочной целью фирмы. Для того, чтобы выжить, возможно, фирма дублирующейся работников и закрыть некоторые из своих заводов. Рост: не все фирмы хотят