Business Types of Ownership

993 Words Sep 19th, 2012 4 Pages
Business Types of Ownership

Before starting any venture it is very important to figure out how the organization is going to build its chain of command. Basically no business is made for short time and for this reason a very careful measurement should be done on ownership. Choosing the appropriate ownership in an organisation depends on nature of business, type of authority, delegation of work, span of organization, type of product, production and operation, legal procedure, financial matters and so on.
The basic types of ownership in a business are:

• Sole Proprietorships: This type of business is operated by only one owner. He or she assumes the entire responsibility and
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So according to the observation it can be said that both the group of hotel and chain hotel are the best way to start hotel business. This gives owners a well-diversified option with good opportunity. They can concentrate on several locations with a specialised theme and develop themselves accordingly to offer the best product to their target market. The management system can be either centralised or decentralised based on the nature and demand of the business operation.

(Fox, 1997)

Fox, L. (1997, July Thursday 31 ). Chains close in on independents. Retrieved June Monday 13, 2001, from

4. Explain how and why customers could use the different classification and grading systems when deciding on where to stay.

Different Classification of Hotels

Hotels are classified on the basis of the service, facilities, size, stars, location and many more. At one side there are luxurious hotels for celebrities, on the other side there are budget hotels for normal family need. Through this classification customers can easily identify which one will match their needs best.

• Resort Hotels: Resort hotels are basically built to facilitate customers’ holiday or trip on a certain season. They can be small one offering accommodation and food or big one offering additional services like spas, pools, beach or mountain locations, on-site
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