TYPES OF BUSINESS
ORGANISATION

Textbook, Chapter 4 [pg 35-51]

Name: …………………………………………………

Class: …………

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Ownership and internal organisation

Types of Business Organisation
Learning outcomes:
• Describe the main features of business organisation in the private and
public sectors.
• Identify the advantages and disadvantages of each of these forms of
business.

The are five main forms of business organisation in the private sector:

a) S_________ T __________

b) P ____________

c) Private l___________ c____________

d) P__________ limited company

e) C______________

Sole Trader

• A business owned by o____ person.

• The owner also known as sole p ___________________.

Advantage 1 : Few legal regulations

Explanation : ________________________________________________
___________________________________________________________

Advantage 2 : Freedom
Explanation : ________________________________________________
___________________________________________________________
___________________________________________________________

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Advantage 3: Close contact with customers

Explanation: ________________________________________________
___________________________________________________________

Advantage 4: Secrecy

Explanation ________________________________________________
___________________________________________________________

Disadvantage 1: _______________________

Explanation : ________________________________________________
___________________________________________________________

Disadvantage 2: _______________________

Explanation : ________________________________________________
___________________________________________________________

Definitions to learn:

Limited liability _____________________________________________

___________________________________________________________

Unlimited liability _____________________________________________

___________________________________________________________

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Partnerships

Partnership is ____________________________________________________

Advantage 1: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 2: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________
___________________________________________________________

Disadvantage 1: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________
___________________________________________________________

Disadvantage 2: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________
___________________________________________________________

Definitions to learn:
Partnership Agreement _______________________________________
___________________________________________________________
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Private Limited Company

• A business owned by shareholders which cannot sell shares through the

Stock Exchange.

• The shares will be sold to f ____________ and f __________ members

only.

Advantage: More business capital

Explanation: ________________________________________________
___________________________________________________________

Advantage 2: All shareholders have limited liability

Explanation: ________________________________________________
___________________________________________________________

Disadvantage 1: Complicated legal matters

Explanation: ________________________________________________
___________________________________________________________

Disadvantage 2: Shares cannot be sold or transferred to anyone else

without the agreement of the other shareholders.
Explanation: ________________________________________________
___________________________________________________________
___________________________________________________________

Disadvantage 3: ____________________________________________

Explanation: ________________________________________________
___________________________________________________________
___________________________________________________________
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Disadvantage 4: ____________________________________________

Explanation : ________________________________________________
___________________________________________________________
___________________________________________________________

Definitions to learn:
Incorporated businesses ______________________________________
___________________________________________________________

Unincorporated businesses ____________________________________

___________________________________________________________

Shareholders _______________________________________________
___________________________________________________________

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Public Limited Company

• A business owned by shareholders which c_____ sell shares through the

Stock Exchange.

• The shares can be sold to public.

Advantage 1: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 2: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 3: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 4: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Disadvantage 1: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________

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Disadvantage 2: _____________________________________________

Explanation : ________________________________________________
___________________________________________________________

Disadvantage 3: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________

Disadvantage 4: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________

Definitions to learn:
Prospectus__________________________________________________
___________________________________________________________

Annual General Meeting_______________________________________

___________________________________________________________

Dividend____________________________________________________
___________________________________________________________

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Other Private Sector Business Organisations

Franchise

• A business based upon the use of the _____________, ____________

logos and trading methods of an existing successful business.

• The franchisee buys __________ to operate this business from franchisor.

When a person buys a franchise business, following are the advantages and
disadvantages:

Advantage 1: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 2: _______________________________________________

Explanation : ________________________________________________
___________________________________________________________

Advantage 3: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 4: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________
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Disadvantage 1: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________

Disadvantage 2: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________

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Joint-venture

• It is when two or __________ business agree to start a new project

together, sharing the capital, risks and profits.

Advantage 1: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 2: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 3: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Disadvantage 1: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________

Disadvantage 2: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________
Disadvantage 3: _____________________________________________

Explanation : ________________________________________________
___________________________________________________________
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Business Organisations In The Public Sector

Public corporations are ____________________________________________

_______________________________________________________________
Advantage 1: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Advantage 2: _______________________________________________

Explanation: ________________________________________________
___________________________________________________________

Disaddvantage 1: ____________________________________________

Explanation: ________________________________________________
___________________________________________________________

Disadvantage 2: _____________________________________________

Explanation: ________________________________________________
___________________________________________________________

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