Posted in Finance, Accounting and Economics Terms, Total Reads: 228
Company refers to a group of people who come together to serve a common objective. Company can take many forms like private limited company, public limited company, non-profit organization, limited liability partnership or co-operatives. Here group of people in a company share a common purpose, share and organize their talent, skills and resources available to achieve common declared goals.
Private limited company is owned by minimum 2 people and maximum 50 people. This group of people is the owner of the company. Private limited company does not invite public to subscribe to its share capital.
Public limited company is owned by minimum 7 people and there is no limit on maximum number of owners. This is a publicly listed company where general public are invited to subscribe to company’s share capital.
Co-operative is a voluntary organization in which members of the organization work together for the promotion of the interests of its members.
Limited Liability Partnership (LLP) is a company in which liability of at least one partner is unlimited and the liability of rest all other members is limited. Here liability refers to being responsible for profit, losses and decision making.
Sole Proprietorship is a kind of company which is owned by only one person. He only bears the cost of operations and is entitled to the profits.