-          business organization

-          capital is provided by an association of real persons

Different liabilities

-          limited company owned by shareholders (Kapitalgesellschaft)

-          private limited company (ltd) similar to the German GmbH, often small, shares are not traded on the stock exchange

-          public limited company (plc) similar to German AG, usually large, usually listed company (börsennotiertes Unternehmen), commonly referred to as cooperation, Corp./Inc.

-          Blue-chip company: erstrangiges Großunternehmen (Bluechip= Aktie mit hoher Marktkapitalisierung)

-          Holding company: A holding company is a company or firm that owns other companies' outstanding stock. The term usually refers to a company that does not produce goods or services itself; rather, its purpose is to own shares of other companies


-          offers a professional service

o   for example: law firm, consultancy firm, research firm


-          Smaller organization

o   For example: family business


An organization is a social entity that has a collective goal and is linked to an external environment:

Typical organizations:

-          health-care-organization

-          non-governmental organization (NGO)

-          not-for-profit organization

-          partnership

-          cooperation

-          universities

-          charities

And there are many other types of organizations.


-          Commercial enterprise (Handelsunternehmen)

-          Small and medium-sized enterprise (SMEs)

-          Social enterprise: motivated by a social purpose

-          State-owned enterprise (Staatsbetrieb)


Agency: A business, acting on behalf of another.

-          Travel agency

-          Advertisement agency

-          Detective agency

Different forms of ownership and leadership:

-          cooperative (=Genossenschaft)

o   people who work together to achieve a common goal

-          sole trader (=Einzelunternehmer)

o   business(owned/operated) by one person

o   one person responsible for all processes/problems etc.

-          partnership (=Personengesellschaft)

§  shared responsibility between two/ more persons

§  partners have unlimited liability

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