Forms of ownership

Question 1

Legal Persona

Answer 1

The legal right of the business or person to enter into contracts, own property and sue or be sued

Question 2

Liability

Answer 2

what or who will take responsibility for the debt of the business

Question 3

Tax implications

Answer 3

Who will be responsible to pay the tax on the profits

Question 4

Continuity

Answer 4

if the business is a legal entity separate rom the owners then it will have continuity

Question 5

Management and control

Answer 5

The owner or shareholders delegate tasks to the board of directors

Question 6

Capital size of the business

Answer 6

the amount of money needed or used for the establishment and working of the business

Question 7

Formation Procedures

Answer 7

The different measures a business needs to go through to be established

Question 8

Advantages of a sole trader

Answer 8

Formation Procedure
Number of owners = 1
management and control
tax
beneficial for customer

Question 9

Disadvantages of a sole trader

Answer 9

Formation Procedure
Number of owners
management and control
Tax
Continuity of existence

Question 10

Advantages Of a Partnership

Answer 10

Formation procedure
Number of Owners = 2 - 20
Management and Control
Tax
Eliminates competition
persuades valuable employees

Question 11

Disadvantages of a Partnership