The Main Features Of Different Forms Of Business Organisation:
Visão Geral
Should a new firm be owned by one person, a few partners, or thousands of shareholders? The legal form a business chooses decides who owns it, who carries the risk, and whether the owners could lose their personal savings if it fails. It is one of the most important early decisions an owner makes.
This lesson compares sole traders, partnerships, private and public limited companies, franchises and joint ventures, and explains the public sector too. You will master the key ideas of risk, ownership and limited liability, and learn to recommend the right form for a given owner.
Objetivos
- Sole traders, partnerships, private and public limited companies, franchises and joint ventures
- Differences between unincorporated businesses and limited companies
- Concepts of risk, ownership and limited liability
- Recommend and justify a suitable form of business organisation to owners/management in a given situation
- Business organisations in the public sector, e.g. public corporations
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- Which business has unlimited liability? A. private limited company B. public limited company C. sole trader D. franchise of a plc Answer: C
- Limited liability means the owners can lose only: A. their home B. the money they invested C. all personal possessions D. nothing at all Answer: B
- Which can sell shares to the public on a stock exchange? A. sole trader B. partnership C. private limited company D. public limited company Answer: D
- A franchisee mainly gains: A. full independence B. an established brand and lower risk C. ownership of the brand D. no fees to pay Answer: B
- An incorporated business is one that: A. is the same legal person as its owners B. is a separate legal person from its owners C. always has unlimited liability D. cannot have shareholders Answer: B
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