CHAPTER 6 - Appropiateness of Different Forms of Ownership Flashcards
1
Q
FACTORS WHICH AFFECT THIS
A
- growth
- size
- the need for finance
- control
- limited liability
2
Q
SMALL SOLE TRADERS
objectives and type of organisation
A
They might be happy to make a modest amount of profit ( just enough for a comfortable lifestyle ) = profit satisficing
3
Q
FAMILY BUSINESSES AND OTHER MEDIUM - SIZED PRIVATE LIMITED COMPANIES
( objectives and the type of organisation )
A
They often do not want to go public because they are afraid of losing control to outsiders ( limited growth and other objectives are more important )
4
Q
MOST MULTINATIONALS…
A
…want to grow
