Commercial organizations: types and their characteristics

Commercial organizations are organizations whose ultimate goal is to profit from manufactured goods or services. There are 3 main groups of commercial organizations: individual enterprises, partnerships and corporations.

Individual enterprises

An individual enterprise, or a business company with a single participant, is owned by one person who has a small capital.

The advantage of this type of organization is the simplicity of its registration, the sole ownership of all profits, independent decision-making and tax benefits. The downside is the small opportunities to raise funds for the development of the company.

This type of enterprise can be registered only in the form of a limited liability company - in case of need to pay off debts, the firm itself will serve as a pledge, and not the personal property of its owner.

An individual enterprise is distributed in the field of services: medical, legal or commercial.

Partnerships

A partnership, or partnership, is an organization owned by two or more persons. The partnership can be complete, or based on faith - limited.

In full partnership, all participants make general decisions regarding business management, bear responsibility for it, share losses and profits, and are fully liable for them in case of debts.

In a limited partnership, its members have different rights and obligations. The participants are divided into full partners who will manage the business and be responsible for the property of the company, and to depositors who contribute some amounts of money to the company, but do not participate in the management. Both those and others receive profit from the enterprise. This form of business reduces the risk of personal investment.

In the form of partnerships, audit firms, service companies and brokerage firms are mainly represented.