DEFINITION

Limited Liability
Business organizations that have formal legal entity owned by a minimum of two people with responsibility apply only to companies without involving the private property or individuals in it.

Cooperative
Firm owned, controlled, and operated by a group of users for their own benefit. Each member contributes equity capital, and shares in the control of the firm on the basis of one-member, one-vote principle (and not in proportion to his or her equity contribution).

Share
Assets belonging to or due to or contributed by an individual person or group

 
Incorporated
A firm or company that has been formed into a legal corporation by completing the required procedures.

Public Limited Company
Incorporated, limited liability firm whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares). Also called publicly held company.

Unlimited Company
Private firm (such as a sole proprietorship or general partnership) whose owner(s), partners, or stockholders accept personal and unlimited liability for its debts and obligations in return for avoiding double taxation of a limited company. Unlimited liability firms are exempt from filing their annual accounts with a public authority (such as Registrar Of Companies) unless they are subsidiaries of limited liability holding companies. Also called with unlimited company.

Partnership
Type of business organization in which two or more individuals’ pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement. In absence of such agreement, a partnership is assumed to exit where the participants in an enterprise agree to proportionately share the associated risks and rewards.


Corporation
Firm that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners. Corporations are owned by their stockholders (shareholders) who share in profits and losses generated through the firm's operations, and have three distinct characteristics.