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There are many forms in which business can be conducted today. The most common forms in which business are being conducted are as follows
Sole Trader- Under this form of business the sole trader is the owner of the business and all the risks associated with the business belongs to him. The capital needed to start the business is provided by the sole trader himself. This form of business is less regulated.
Partnership- partnership is regarded as an association of people who undertake to run a business together. The risk associated with the business is distributed among the partners. The capital needed to start the business is ploughed in by all the partners together. This form of business is also less regulated.
Trust- trust is considered as an entity which is formed for holding the property or revenue for the benefit of other people.
Company – company is regarded as a separate legal entity. It ‘s existence is separate from its owners i,e. the shareholders. The company is capable of entering into transactions under its own name and it can sue or can be sued in its own name. The liability of the shareholders is limited to the extent of shares held by them. (Business structures and types, 2014)
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