Business Organisation Flashcards
What are the main types of business organisations
1) Sole trader
2) Partnership
3) Limited Companies (private limited company, public limited company)
4) Non-trading organisations
5) Cooperative society
Define Sole Trader
A sole trader is a self-employed person who owns and runs their own business as an individual.
Define Partnership
A partnership business, consists of two or more people who combine their resources to form a business and agree to share risks, profits and losses
Define private limited company
A legal entity defined in the Companies Act as any company that is not a public company
Define public limited company
A company that has offered shares of stock to the general public
Define non trading organisations
The organisations whose main objectives are not to earn profit but to provide valuable services to its member and to the society
Define Cooperative Society
A Co-operative Society is an organization that is formed by a group of people whose primary objective is the promotion of the economic interests of its members.
