Business Function Essay Example | Topics and Well Written Essays - 1500 words - 1

Business Function - Essay Example In the second category, the enterprise is not registered with the relevant authority as a business. It comprises two types of ventures: This is the oldest, most common, and most basic business type. As the name suggests, this type of enterprise is owned and managed by one person, who is in charge of all operations conducted on behalf of the business. Since it is the easiest to start, it manifests in form of small retailers and utilities like beauty services, photographers, repairs and maintenance, transport, cleaning, etc (Akdeniz, 2013:16). This type of business is inexpensive to start and, as a result, is often supported by the founder’s savings until growth necessitates external funding. In its simplest form, a partnership resembles a sole trader, with the only difference occurring in the sharing of ownership (Gevurtz, 2014:21). All partnerships should have partnership agreements that explain the rights and responsibilities of the various partners involved. In light of this, there are different types of partners, who are all covered by the partnership agreement. For example, there may be dormant, â€Å"sleeping,† or quasi partners, who own a share of the enterprise but are not actively involved in its management (Cornell, 2013:36). Partnerships have unlimited liability, and are common in careers like accountancy, dentistry, medical practice, law, etc. Starting in 2001, there has been a new type of partnership known as a limited liability partnership. This is like a hybrid of a partnership and a limited company, since it has limited liability (like all limited companies) but must be owned by not less than two members (making it a partnership). Limited liability partnerships, also known as LLPs, are formed to aid professional partnerships among doctors, dentists, lawyers, accountants, and others, who are barred from forming limited companies because of constraints imposed by their professional