LEGAL FORM OF A BUSINESS

According the Legal form of a business, which signifies the duties and the rights of the owners, there are two chief categories.

Ř      The Personal and

Ř      The Companies, where the owners can be one or more

About the companies there are four types of them:

                                 i.            General Partnership: There are two or more partners and each one contributes a share which may be unequal, but all of them have unlimited responsibility* for the obligations.

                               ii.            Limited Partnership: In this kind of company each of the partners has different responsibilities and rights. One or more of them haw the right of the handing and the representation of the Limited Company

      ( General Partner) and the unlimited responsibility. The other ( the most) have responsibilities according to their contribution. They haven’t the right to present or manage the company.

                              iii.            Limited Liability Company: Each one of the partner contributes a part in the company and he is responsible only for that part. They can take from the total capital of the company accordingly to their contribution. No one can sale his share unless all the partners are agreeable to that.

                            iv.            Joint – Stock Company: In this company, the partners have the responsibility only for the sum of money that his contributed. The total capital is shared. These shares are Titles  of properties of the company and can be assigned at the most cases without any terms.

                              v.            Franchising: A new kind of dynamic company and interservice co operation which haw the aim to promote products and services. Franchising is a deal between  two partners. The first one is the owner of a big and successful business and the other one is someone who wants to create a new enterprise. The owner gives to the second person his firm's name, methods of communication and advertisements. It seems like the new business is a branch of the famous one.

 

* Unlimited responsibility = The obligation of each partner in the company includes all his individual property.

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