hello everybody Mr chair here again today we like to look at the forms of ownership or types of ownership of business the most common one is so proprietor what is a so proprietor onean business he may employ many many employees but he has only one owner okay the disadvantage of a so proprietor is that when he pass way there's no continuity of the business in other words the business stop another disadvantage is that is a one manal so he has well un uh limited resources uh limited capability so this is another uh disadvantage now the
second type of business ownership is partnership whereby you got two minimum two or maybe up to 20 or 30 Partners together so for this type of business is very important to have a partnership agreement for example when there's dispute among Partners okay how is it going to be resolved most likelihood it will be written in the partnership agreement to have an arbitrator to decide before going to the court okay because Court uh proceedings takes a lot of time and it's very costly okay so the partners should agree among themselves what can do what they cannot
do who is supposed to do what and so forth the third type of ownership is called companies or sometime we call it corporations this is different whereby the shareholders do not run the business shareholders give the money to companies company is treated like a separate legal entity in the eyes of the law there's no human uh element in company and unlike so proor and partnership we have a human element we can identify the actual person physically okay but in company there's no human uh face there is only a legal entity now when shareholders give the
money to the company maybe the company is started by some uh uh directors so the directors will run the company on behalf of the shareholders and how they do that the directors appoint the CEO the general managers and managers and so forth now one big advantage of uh company is that there's a continuity if a shareholder die that doesn't mean the company die okay and in return When the company makes profit the shareholders will be entitled to a dividend declare and approv in the annual general meeting okay so that's a little bit different now which
is best it depends uh maybe when you started small may be a so proprietor as a business grow maybe you want to move into a partnership and if the business become more and more there is a very bright future maybe they want to incoporate a company thank you very much
