Types of business organisations-4 Flashcards
What are the ways in which a private sector company can be owned?
- Sole trader
2.Partnership
3.Joint venture
4.Franchises
5.Public limited
6.Private limited
Whats the most common form of business, and why?
The most common form of a business is sole proprietorship, because setting it up requires only few legal actions.
What is a sole trader?
A sole trader is a person who single handedly owns and operates a business.
To whom is a sole trader structure recommended?
- To those who are setting up a new business.
- Those who do personal services such as hairdressing.
- Those who do not need much capital to get the business going.
What is a partnership?
A partnership is where 2 or more people agree to jointly own a business.
What is the maximum number of people in a partnership in India?
There can be a total of 20 people in a partnership in India.
What do the partners do?
They usually contribute to the capital of the business.
What is a written agreement between people agreeing to be partners called?
A partnership agreement.
What will happen to a company if the owner dies?
The company will go on, as it is a separate legal entity.
