Types of Business Organisations
1. Soletrader
It is owned and controlled by only one person
| Advantages | Disadvantages |
| Sole decision maker and own boss | Unlimited liability |
| Ease of Formation | Lack of continuity |
| Closer to customers |
2. Partnerships
It is owned and controlled by 2-20 members
| Advantages | Disadvantages |
| Sharing of risks and responsibilities | Conflicts of ideas |
| Raise higher capital | Sharing of Profits |
| Sharing of ideas and knowledge |
3. Public Limited Company
It is where the shares could be sold to the members of the public at the stock exchange
| Advantages | Disadvantages |
| Limited Liability | Legal Formalities |
| Businesses can continue operating even if the owner passes away | Lack of control |
4. Private Limited Company
It is where shares are sold to friends, families and relatives only.
| Advantages | Disadavantages |
| Limited Liability | Raise lower capitals |
| Lack of continuity | Conflicts among members |
5. Franchise
It is when the franchisee uses the brand name and logo of an already existing business
| Advantages | Disadvantages |
| Less risk of failure | High license fee |
| Lower administration costs as there is no need to spend too much money on advertising | Sharing of profit |
6. Joint Venture
It occurs when two already existing businesses join their resources to start a new project
| Advantages | Disadvantages |
| Sharing of costs | Different managerial styles |
| Integrate into a new market | Sharing of profit |
7. Public Corporation
This is a type of business organisation owned and controlled by the government
| Advantages | Disavantages |
| Maximise social welfare | High bureaucracy |
| Job security | Political influence |
Annual General Meeting (AGM)
It is a legal requirement for all businesses or companies that shareholders may vote for the board of directors.
Dividend
It refers to the payments tot eh shareholders from the profit made after tax paid to the government