Business and its Type

Business is a humanity activity which is engage for the sake of earning high profit. Someone is saying business is a core activity through which countries develop and promote their society. Business is basically related to satisfy the human wants and needs. Business ratio in emerging market is growing and increasing day by day. You can say that fewer developing countries are putting effort to enhance the business volume. If you explain business in simple language “is an activity to do for the sake of profit”. Some experts say that activity related to business must be a legal. Because illegal activity not related to business. Business is also categorized in different parts. There is a three different famous part of business.
1. Sole Proprietorship
2. Partnership
3. Joint stock companies
These are the three basic categorize of business that is mostly followed by developed and underdeveloped nations. Every big business has some key factor behind their success. And these key factors are Honesty, Discipline, and Regularity in the fields. Either business is related to goods and services.
Business of sole proprietor has there on identity and has different method to deal with such business like in sole owner business number of owner is one and he is only responsible for all profit and loss of business. In a sole owner business one benefit is that decision making is very quick and disadvantage is lack of confidence of people.
In a Partnership business the number of partner is more than one according to partnership act 1932 the number of partner is two to twenty and in case of banking companies is two to ten in case of partnership the profit and loss is distributed according to the ratio that mentioned in partnership deed. In a partnership business there is a necessary to sign a deed with all terms and conditions. Because it’s helpful for the partner. If deed is not signed then profit and loss wills be shared equally among the partner or can be shared according to capital invested. In a partnership deed of business nature of business and cost of capital are mentioned. But in case of Joint Stock Company the registration is necessary in stock exchange and capital is gathered through sale of shares and debentures and company bonds. Joint stock company is treated as artificial person created seal it has an legal entity and separate  from the person and composing it you can say joint stock company business itself is a body the decision made by any Director its treated as the company decision.