Question

explain the types of the company

Answer 1

Answer:

A company is a legal entity or an artificial person formed by a group of individuals or members to earn profits.

The types of the company are:

Partnerships: When two or more parties come together to form a business it is called as an partnership business.

Corporation: A legal entity which is also called as artificial person that is separate and different from its owners and provides the same rights and responsibilities as a person.

Association: Any group of individuals who join together for business, social or other purposes as a continuing entity. May or may not be taxable depending on structure and purpose. Hence is also a type of a company.

Fund: Any business engaged in the investing of pooled capital of investors is called a fund and also a type of company.

Trust: A fiduciary arrangement in which a third party holds assets on behalf of beneficiaries is called a trust and hence is also a type of an company.

Private company

Any company that is not a public company. A private company tends to be smaller than a public company and cannot issue shares to the public.

Public company:

A company whose shares are traded freely on a stock exchange.

Unlimited companies:

Unlimited companies are a fairly rare type of corporation aggregate as each member is jointly and severally liable for the debts of the company in the event of its winding-up.

Companies limited by guarantee:

corporation aggregate is a company limited by guarantee. Each member undertakes upon the winding-up of the company to contribute to its assets up to a specified amount.

Quoted companies:

The shares in a public company that has been accepted by the Stock Exchange can be bought and sold in the open market.

Hence a company can be unincorporated and incorporated.

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