How many types of ownership available for companies?
What are the various types of company ownership?
Companies or corporations are one of the most advanced business structures that exist. They provide the base for many other types of business structures. Furthermore, there are various advantages that this business structure has over others. These are also features that investors or owners prefer.
Companies have unlimited liability, which means owners only have to bear liability for their share of a companyβs ownership. They also come with a better tax advantage compared to others. Most importantly, however, companies offer a better ownership structure. This structure comes through shares, which are easily tradeable compared to other forms of ownership.
Most investors prefer investing in companies as they offer better flexibility over their investments. For existing owners, the ability to trade shares in the market provides a significant advantage over other business structures. However, these features arenβt the only advantages that share ownership provide. Owners also have the option to choose between one of the many different types of ownership.