The paper "Business Ownership in the Private, Public and Voluntary Sector" is an amazing example of an essay on business. This paper aims at giving the various options of business ownership in the private, public and voluntary sector, broadly analyzing their characteristics and further doing a comparison between two organizations. The public sector forms of business are carried on for the purpose of creating wealth in a nation and also providing employment to its nationalities. It also aims at providing goods and services to the public at large e. g. the meat commission.
Any government in a country is responsible for the running of the public sector enterprises. The private sector, on the other hand, carries out business for the purpose of gaining profits. They are managed privately by different individuals. In the process, they help in growing the economy of any nation by providing employment and services to the country. The voluntary sector entails different charities and voluntary bodies offering support in communities with an aim of reaching an intended goal e. g. helping the needy, cancer ailing people, etc. this sector is not carried for making profits but to give support when need be. A sole trader is a form of business owned by one person only.
It is usually an enterprise carried on for the purpose of making profits. The owner has unlimited liabilities. In case the company goes into debt, the individual will be held liable to clear the debts with his own property. The business is not a legal entity. The partnership business is carried on by two or more individuals up to a limit of twenty. The main purpose is earning profits.
It is not a separate legal entity as in the case of the sole trader: hence any debts incurred are deducted directly from the partners should the business fail to honor them (Jan, 192). Public limited companies are formed as separate entities from their owners. They have a limitation on the number of people required to form the different companies i. e. a minimum of seven. 25% of the allotted shares of the company must be fully paid before commencement. Shares are freely transferred to these companies. On liability of debts to the company, the creditors can only sue the company directly i. e.
in our case the government to claim its money. The private limited company is more the same as public companies. They are formed as separate legal entities from its owners hence the owners are not liable for the company’ s debts. The minimum number required is two up to a maximum of fifty. Shares are not freely transferred to the public (Jan, 193). Cooperatives are formed by a group of people with the intention of offering services to its members.
A board of directors is elected to oversee the running of the cooperative. It is a legal entity separate from its members hence on liability to debts, the cooperative is accountable for fully. An annual report is usually prepared for its member’ s review of the cooperative’ s undertakings. The franchise entity is where a person or a group of people are given the right to use the trademark of another person- the franchiser to market a service or a product. Technically speaking, this is not a business but an agreement between the two parties.
Any liability of debts is wholly borne by the franchisee unless the agreement states otherwise.