Business terms

[Eli05]

Hello,

Could you please help me understand the meaning of these terms constantly used in business:

Co-operative company
Public Limited Company
Private Limited Company

I don't understand the difference between them all.

Thanking you for you time, and anticipating a reply soon.

Eliza

[Mister Micawber]

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Co-operative company -- An organization owned by its members. Examples are agriculture cooperatives that assist farmers in selling their products more efficiently and apartment buildings owned by the residents who have full control of the property.

Public Limited Company; Private Limited Company -- In the United Kingdom there are two types of limited companies: (a) a private limited company in which the public cannot be invited to subscribe to any share issue and (b) a public limited company (plc) which can raise funds through share issues. Before a limited company can "go public," it must have a minimum share capital. A private limited company requires no minimum share capital.
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[Eli05]

So, a Private limited company is owned by either one person or few partners but no shares are sold right? Like a Sole Trader then?

Thanks for taking the time to reply.

Eli

[Mister Micawber]

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Your idea of a Plc is correct, but a sole trader (sole proprietor) is not incorporated, that is, not a registered, limited company (at least, necessarily)-- s/he is just self-employed like I am, operating my own business. I am a one-man language school, but I am not incorporated in any way, and I am not a limited company. I am responsible for all the debts of my school, for instance.
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[Tomasz Klimkiewicz]

Being also interested in the topic, I'll permit myself to pop in with my own question: how does a Joint-Stock Company relate to the other categories of business entities mentioned so far?

Thanks in advance MM.

[Eli05]

Thank You for taking the time to explain to me the difference between all the terms. Its made things a lot clearer for me.

Take care,
Eli

[Mister Micawber]

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A joint stock company is a company which has some features of a corporation and some features of a partnership. The company sells fully transferable stock, but all shareholders have unlimited liability.

And a partnership is a type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts; other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments.

(I'm just pulling these definitions off the WWW, Tomasz-- I studied them back in BusAdmin 233, but have forgotten most of what I learned then.)
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