A company is said to be "an association of persons formed for the purpose of an undertaking or business carried on in the name of association".
It should be emphasised that BUSINESS is any activity that provides good or services at a profit; then, every business carried out in no matter the form it takes, must be registered and must be not be illegal.
It should be emphasised that BUSINESS is any activity that provides good or services at a profit; then, every business carried out in no matter the form it takes, must be registered and must be not be illegal.
Types of Business:
- Sole Proprietorship: it's the simplest form of business organization with minimal legal requirement. It's owned by one person but can have large number of employees. The liabilities are unlimited and the business ceases if the owner dies.
- Partnership: it's the agreement between to or more people to engage their capital in working together. The responsibility, debt and risk of the company is shared among the partners. The liabilities are also unlimited and a partnership may end if any of the partners resigns or dies.
- Companies: this is a separate legal entity and is distinct from its members and shareholders. A formed company is said to have been "incorporated". A company can own a property, make contracts, employ people and being sued or sue other party. Continuity continues in company is any of the members dies or incapacitated.
Classification of Companies: Companies could be any of the forms listed below:
- Unlimited and Limited Company
- Public and Private Company
- Holding and Subsidiary Company
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