What are the different types of organizations?
Quick Answer
The different types of organizations include sole proprietorship, partnership, corporation, limited liability company and cooperative. Organization type is determined by the form of ownership, the owners’ legal liability and their income tax arrangement.
Continue ReadingFull Answer
Sole proprietorship organization is a form of business owned by a single individual. This is the most basic and easiest type of organization to set up. The owner of a sole proprietor company has unlimited liability, implying that creditors can collect his personal assets in case of payment default. A partnership, on the other hand, is a business owned by a minimum of two people who jointly pull the resources into the investment.
A corporation is a form of business that has a distinct legal personality from its owners. The people with shares (known as stockholders) are the owners of the corporation, but they have limited involvement in the running of the company. Unlike in sole proprietorship and partnership, corporation owners enjoy limited liability. A cooperative is a form of organization owned by a group of people for their mutual benefit. Finally, a limited liability company is a hybrid of corporation and partnership.
An organization is generally an organized group of people with a specified purpose. Organizations are essentially businesses, societies or associations. All organizations have a management structure that defines relationships between the various operations and the members. The structure also spells out the roles and duties assigned to each member, and the authority to perform certain functions.
Learn more about Social SciencesRelated Questions
-
Q:
What are some examples of social responsibility?
A: Social responsibility can take many forms, from a corporation pledging to eliminate pollution from its factories into local waterways to a family household... Full Answer >Filed Under: -
Q:
What is a special purpose vehicle?
A: A special purpose vehicle is a corporation or limited partnership created to achieve a narrow set of objectives. These objectives can involve transferring ... Full Answer >Filed Under: -
Q:
What is a firm in economics?
A: Investopedia defines a firm as a business organization, such as a corporation or a partnership, with different levels of legal protection. However, the Lud... Full Answer >Filed Under: -
Q:
What are the three basic legal names for businesses?
A: The three basic legal names for a business are corporation, partnership and sole proprietorship. Each category has several variations, and which one is bes... Full Answer >Filed Under:
