The Main Features Of Different Forms Of Business Organisation:
Overview
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.
Objectives
- 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
Lesson Note
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Lesson Evaluation
Congratulations on completing the lesson on The Main Features Of Different Forms Of Business Organisation:. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- 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
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Recommended Books
Practice Mock Questions
Want to practice mock questions on The Main Features Of Different Forms Of Business Organisation:? Download the Green Bridge CBT app to access mock questions and full practice assessments for this topic.
Download The App On Google Playstore
Everything you need to excel in JAMB, WAEC & NECO
