Forms of business

Most of the countries have two main business sectors the public and the private
sector. The public sector are firms run by the government. While the private sector
are companies operated by individuals. Check the following chart:

Public sector
Public corporations: A business owned by the government and run by directors
appointed by the government. These businesses usually include the water supply,
electricity supply, public hospitals, etc.
Municipal enterprises: These businesses are run by local government authorities
which might be free to the user and financed by local taxes. (e.g, street lighting,
schools, local library). If these businesses make a loss, usually a government
subsidy is provided. However, to reduce the burden on taxpayers, many municipal
enterprises are being privatized.

Private sector
Sole traders: are the most common form of business worldwide, and take up as
much as 90% of all businesses in a country. Businesses are owned and run by one
person only. Even though they can employ people, one person is still the sole
proprietor of the business. These businesses are so common since there are little
legal requirements to set up.

Partnership: together. They require a Deed of Partnership or Partnership

Agreement, which is a document where partners agree to work with each other.
Document states who put the most capital into the business or who is entitled to
the most profit.
Limited companies: there are 2 types of limited companies
1. Private limited company:
have separate legal
identities to their owners,
and thus their owners
have limited liability. The
company has continuity,
and can sell shares to
friends or family,
although with the
consent of all
shareholders.
Abbreviated as Ltd (UK),
or Proprietary Limited, (Pty) Ltd.
2. Public limited company: are companies are similar to private limited companies,
but they are able to sell shares to the public.

Co-operatives: Cooperatives are a group of people who agree to work together and
pool their money together to buy "bulk". Their features are:
1. All members have equal rights, no matter how much capital they invested.
2. All workload and decision making are equally shared.
3. Profits are shared equally.

Other forms of business

There are other forms of business: Close corporation, Joint ventures and
Franchising.

Class Activity
1. Identify an example of a company in the country.
2. Justify using arguments why do you consider that company has its form of
business.