Types Of Business Organisations

Question 1

Sole trader

Answer 1

Is earned in control by one person.

Ad:easy to set up, full control, receive all profits, personal relatiin with customers.

Dis:unlimited liabilities, full responsibility, lack of capital

Question 2

Partnership

Answer 2

Agreement between 2 or more people to own finance and run a business jointly.

Ad:easy to set up, new skills and ideas, more capital investment.

Dis:conflicts and different objectives, unlimited liability(personal items at risk), lack of capital.

Question 3

Joint stock companies

Answer 3

Can sell shares to raise capital. shareholders then receive dividends

Question 4

Private limited companies

Answer 4

Sells its shares to only people known by the existing shareholders

Question 5

Public limited company

Answer 5

Shares to any individual or organisation in the general public through stock exchange.

Question 6

Franchise

Answer 6

Well, you buy the right to use the name, logo, and product of an existing company, for example, Domino’s McDonald’s.

Question 7

Joint venture

Answer 7

Two or more businesses agreed to do some work together on a project