TYPES OF BUSINESS
INTRODUCTION
It is very important to know about support for small, medium business
in country, types of business, advantages and disadvantages if we want to
found a company. Types of business are not the same inn every country.
Today basic regulations regarding the types and procedures of incorporating
business organizations and performing business activities are found in
different laws and other regulation acts.
My topic objective: to describe types of business in Lithuania and
Great Britain.
Goals:
1. to describe a concept of business;
2. to speak about types of business organization and
enterprise grouping in Lithuania and Great Britain;
3. to make acquaintance of small, medium business importance,
advantages and disadvantages for Lithuania economic.
Method: literature analysis.
I chose this topic because it seems very interesting for me. I study
administration so it is very urgent for me. I hope this experience will be
useful for my studies. I think it is necessary to know about Lithuania
business for everybody.
CONSEPT OF BUSINESS
Business- economic activities, which is make from production of goods
and commerce. Business is occupation which makes money. Business is
increasing of riches by economic standpoint. Business occupy important
place in a country economic.
Kind of enterprise:
➢ Industrial- when raw materials and materials are buying and
goods are making from it.
➢ Commercial- goods are buying for selling.
➢ Financial- when securities are selling. Object is money or
currency.
TYPES OF BUSINESS ORGANIZATION IN LITHUANIA
Based on the Law on enterprises, the following types of enterprises
may be formed in Lithuania:
1. personal enterprise;
2. general partnership;
3. limited partnership;
4. private stock company (UAB);
5. public stock company (AB);
6. investment company;
7. state enterprise;
8. municipal enterprise;
9. agricultural company;
10. cooperative company.
A personal enterprise may be owned by a single individual or spouses.
The owner’s liability for the obligations of his personal enterprise is
unlimited and generally applies to all of his personal property. The owner
remains liable for the obligations of his personal enterprise even after
its liquidation.
General partnerships are enterprises with unlimited liability
established on the basis of a partnership or joint venture agreement
between several individuals and legal persons. The general partnership is
created through the transfer of property from individual ownership to co-
ownership within the partnership, with the purpose of conducting business
activities under a common name of the firm. All partners are jointly and
severally liable for the obligations of the general partnership. The
general partnership is not liable for the obligations of its partners if
such obligations arise in their activity unrelated to the activities of the
general partnership.
A limited partnership consists of general and limited partners. The
difference between limited and general partnership lies mainly in the
degree of liability of the respective partners. General partners have
unlimited joint and several liability, identical to the unlimited liability
of the partners of the general partnership. The limited partnership has at
least one general and one limited partner.
Private and public stock companies. A stock company is an enterprise
whose authorized capital is divided into shares. The company is liable for
its obligations only to the company’s obligations of its assets.
The minimum authorized capital for a private stock company is
10000litas. The minimum number of shareholders in a private stock company
is one and the maximum number is 100 in a public stock company, the minimum
authorized capital is 150000 litas. The minimum number of shareholders in a
public stock company is one and there are no limitations on the maximum
number of shareholders.
Shareholders of stock companies may be Lithuanian or foreign natural
or legal persons. Each shareholder has such rights in the company that are
inherent to the shares owned.
Shares are securities certifying the participation in the stock
company’s capital and entitling them to certain property and non-property
rights. Shares issued by stock companies are divided according to:
• the manner of disposal- registered shares;
• the rights attached- ordinary and preference shares.
Both private and public stock companies may issue registered shares. Bearer
shares may be issued by public stock companies only. Ordinary shares
constitute the main part of the company’s shares and may be issue by both
private and
public stock companies. All ordinary shares must be of equal
nominal value. The total nominal value of preference shares may not exceed
a third of the authorized capital of the company.
Public stock companies are prohibited from introducing any restrictions on
the shareholders’ right to transfer fully paid shares to other persons.
Their shares may be traded publicly.
The Law on Securities Market requires public stock companies to
register their shares with the Securities Commission of the Republic of
Lithuania prior to their circulation. In addition, certain disclosure
requirements are applicable to public stock companies. Securities issued by
public stock companies may be traded either privately or through the stock
exchange. The stock exchange is the only venue for the execution of the
secondary purchase-sale of securities included in the official or current
trading lists of the stock exchange registered in Lithuania.
An investment company is a public stock company whose activities
principally consist of investing into securities. A special law regulates
the formation and activities of investment companies.
State enterprise- is founding for giving services, which can not give
personal enterprises, agricultural company and stock companies. There is
about 700 state enterprises in Lithuania. State enterprise can promulgate
shares. A foreign investor may own up to 49% of the authorised capital in a
state-owned enterprise. When foreign capital comprises 51% or more of the