List and discuss the type of business organizaton under the new codeof ethiopia .
This Question only explain conclusion ?
Under the new code of Ethiopia, there are mainly four types of business organizations recognized:
1. Sole Proprietorship: This is when a business is owned and operated by a single individual. The owner has complete control over the business and is responsible for all its debts and liabilities.
2. Partnership: In a partnership, two or more individuals join together to operate a business. They share the profits, losses, and responsibilities of the business according to their agreement.
3. Private Limited Company: A private limited company is a separate legal entity from its owners. It is owned by shareholders and managed by directors. The liability of the shareholders is limited to the amount they have invested in the company.
4. Public Limited Company: A public limited company is similar to a private limited company but can offer its shares to the public. It is often listed on a stock exchange and subject to more regulatory requirements.
Each type of business organization has its own advantages and disadvantages, and the choice of structure will depend on factors such as the size of the business, the number of owners, the level of liability, and the long-term goals of the business.