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Definition:

- A commercial enterprise was undertaken jointly by two or more parties that otherwise retain their distinct identities.

Advantages:

1. Penetrating New Markets; provides a mechanism for companies to enter new markets without any legal hassles or regulatory restrictions.

2. Synergy; is one of the implicit advantages of a Joint venture. Both parties coming together has their own strengths and weaknesses.

3. Maximum Flexibility and Limited Liability; is a very efficient and progressive collaboration between the two parties as it provides maximum flexibility and minimum liability.

Disadvantages:

1. Increased Liability; each company is responsible for claims against the joint venture on an equal basis despite its level of involvement in the activities that prompted the claim.

2. Uneven Division of Work and Resources; unequal distribution of work and resources can lead to conflicts among participating companies and result in a lower success rate for the joint venture.

3.  Limited Life; the death or withdrawal of a partner may cause the automatic termination of a joint venture. This will put the other partners of the joint venture at a disadvantage if they want to continue the business.

Examples:
- Caradigm (Microsoft Corporation + General Electric)
- Barnes & Noble + Starbucks

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Definition:

- A company issuing stocks, which are traded on the open market, either on a stock exchange or on the over-the-counter market.

Advantages:

1. Public companies have greater recognition in terms of outreach and brand reputation. If a public company performs well enough, it gets noticed quicker and better.

2. Public companies, with easier access to equity markets, have the option of a cheaper form of financing in equity. Private companies have to rely mostly on bank loans or venture capitalists.

3. Public companies can deploy models that link growth/profits with employees’ performances by making use of employee stock options. Such models tie performances with share ownership and incentivize employees immensely.

Disadvantages:

1. Public companies must follow regulatory standards that are mandatory for companies before getting listed on stock exchanges.

2. Public companies are necessarily required to publish and release documents periodically as mandated by various standards. Annual and quarterly reports are some such examples

3. These companies are also required to undergo regular audits following which public disclosures are made so as to actively engage shareholders.

Examples:
- Costco Wholesale
- China Everbright Bank

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Definition:

- A private limited company is a type of privately held small business entity, in which owner liability is limited to their shares, and shares are prohibited from being publicly traded.

Advantages:

1. It has an unlimited life, the company does not cease with the death of a director or shareholder.

2. Private Limited Companies have a reliable legal precedent to guide and direct the shareholders and directors.

3. Operational flexibility is high

Disadvantages:

1. Conflicts of power and interest among shareholders

2. A Limited Company is more expensive to set up than a sole trader or partnership.

3. Management confusion

Examples:
- Apple
- Huawei

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Definition:

- a franchise is a type of business whereby a business owner licenses the rights to operate a particular company, along with its products, branding, and knowledge, for a fee.

Advantages:

1. Franchises offer the independence of small business ownership supported by the benefits of a big business network.

2. Have a higher rate of success than start-up businesses.

3. Franchises often have an established reputation and image, it can gather much support.

Disadvantages:

1. Bad performances by other franchisees may affect your franchise's reputation.

2. There are usually restrictions on where you operate, the products you sell and the suppliers you use.

3. Franchisor headquarters innovation is constrained, while franchisee innovation is not restricted, it is likely that franchisors through franchising cultivate peer competitors.

Examples:
- Mcdonald
- Pizza Hut

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Definition:

- A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates.

Advantages:

1. Simple set up and operation.

2. Availability in large resources.

3. Shared responsibility - risks, management etc.

4. More expertise than just 1 owner.

Disadvantages:

1. Income must be shared with partners.

2. There is a risk of disagreements and conflict among partners and management.

3. Poor decisions made by one partner may lead to problems for others.

4. The liability of the partners for the debts of the business is unlimited.

Examples:
- RedBull
- GoPro

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Definition:

- A sole trader or sole proprietor is someone who establishes and operates a business on their own. They can employ other people if they want, but the sole trader makes all business decisions individually.

Advantages:

1. You have full control over daily and strategic decision making.

2. You have no staff to manage or pay.

3. All financial data is kept private.

Disadvantages:

1. Lack of resources or Capital.

2. No specialization

3. Too much responsibility to take due to the limited number of people.

Examples:
- Electricians
- Gardeners