Types Of Business Organisations

Question 1

List the different types of business organisations

Answer 1

Sole trader
Partnership
Private limited company
Public limited company
Franchise

Question 2

Describe a sole trader in terms of ownership, control and finance

Answer 2

Ownership:
By one person

Control:
The sole trader

finance:
Investment by sole trader

Question 3

Describe a partnership in terms of ownership, control and finance

Answer 3

Owned:
2-20 individuals

Control:
Spread amongst partners

Finance:
Partners capital

Question 4

Describe a private limited company in terms of ownership, control and finance

Answer 4

Owned:
Shareholders. Shares only sold by agreement

Control:
Board of directors

Finance:
Shareholder capital

Question 5

Describe a public limited company in terms of ownership, control and finance

Answer 5

Owned:
Shareholders. Shares sold on the stock exchange

Control:
Board of directors

Finance:
Shareholders capital