Preview

TYPES OF ORGANISATION

Satisfactory Essays
Open Document
Open Document
1019 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
TYPES OF ORGANISATION
TYPES OF ORGANISATION QUIZ

1) Which form of business organization do you think is most suitable for each of the following businesses? Explain your answer fully:
a) A young student is planning to offer his services to neighbors as a gardener. He will purchase only cheap tools to start with. (3)
The sole trader form is most suitable for this business, because sole trader is most common form- operated just by one person, and this business is running only by a young student, which is only one person, so he can complete control what he want to does, and easy to set it up.
b) A TV and radio broadcasting business aims to provide services to the whole population regardless of their ability to pay. (3)
For this business, it should choose PLC, since the aim is to provide services to the whole population, and other business organization doesn’t have the ability to running this business that big, as we all know, PLC is most suitable for very large business.
c) A small group of lawyers wish to set up in business together. Their professional association does not allow the lawyers to have limited liability. (3)
Partnership is the best choice for the layers, since the professional association does not allow the lawyers to have limited liability, that’s exactly like partnership, they doesn’t have limited liability but they have more capital to invest and they could have more ideas for the business.

2) Explain two disadvantages of a partnership. (4)
People who in partnership, they doesn’t have ability to have limited liability, more unfortunately, if one of the partners die, the whole business is end, and the number of partnership usually can’t more than 20.

3) Explain two benefits to a sole trader of converting to private limited company status. (4)
When you a sole trader, your resources is very limited, you have nobody to discuss business matter and you don’t have the benefit of limited liability, however when you are in private limited company, you will have a

You May Also Find These Documents Helpful

  • Powerful Essays

    Acct504 Study Questions

    • 12050 Words
    • 49 Pages

    2. Which is not one of the three forms of business organization? A. Sole proprietorship B. Creditorship C. Partnership D. Corporation…

    • 12050 Words
    • 49 Pages
    Powerful Essays
  • Satisfactory Essays

    There are four main forms of business structures. The structures of business differentiate based on liability, tax implications, and what type of business is being evaluated when determining what structure to use. This paper will cover the advantages and disadvantages within the four types of business structures; Limited Liability Corporations, Corporations, Partnerships, and Sole Proprietorships.…

    • 642 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    unit 36 business P1 and P2

    • 1627 Words
    • 4 Pages

    The business type I have chosen to do is a sole trader, which small business that is between 1 and 10 employees. The advantages of a sole trader are that all of the profits go to the owner, and that they don’t have to get anyone else’s permission to do what they want to the business, as they have full control of the business. The disadvantage of a sole trader is that they have unlimited liability, which means that is the business goes into financial difficulties, there is no limit in the amount they can take.…

    • 1627 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    P4 & M2

    • 4018 Words
    • 17 Pages

    sole trader- is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits and has unlimited responsibility for all losses and debts. Free From is my business and since I am the only owner this means it is a sole trader some of the challenges that comes with being a sole trader or starting up my own business will be finances, as a sole traders often it’s difficult to raise finance to fund my own business. Sole traders’ may also struggle with expansion in the future. Another challenge when it comes to starting up my own business would be decision making, all decisions must be made by the sole trader. There is no room for help by others. And so the success or failure of the business rests on one person.…

    • 4018 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    M1 analyse why a sole trader might want to become either a partnership or a private limited company.…

    • 893 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Business Sample Questions

    • 1643 Words
    • 7 Pages

    Compare and contrast the following forms of business organization: sole proprietorship, general partnership, limited partnership, limited liability company, and corporation as to ease of formation, liability of owners, management, and tax implications.…

    • 1643 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    acc2

    • 1323 Words
    • 5 Pages

    Identify and describe the three basic forms of business organizations. What are the advantages and disadvantages of each form of ownership?…

    • 1323 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    Arcadia Sports Case Study

    • 947 Words
    • 4 Pages

    Advantages the sole proprietorship has complete control and decision-making over the business. The sole proprietorship can take discretion of the sale or transfer of his/her own terms. No corporate tax payment. Minimal legal costs to from there are few formal business requirements…

    • 947 Words
    • 4 Pages
    Good Essays
  • Good Essays

    You Decide

    • 465 Words
    • 2 Pages

    Partnerships: “Two or more people share ownership of a single business.” In a partnerships business legal contract needs to be signed and understood by both parties such as “how decisions will be made, profits will be shared, disputes will be resolved, or what steps will be taken to resolve the partnership when needed.” There are 3 types of partnerships: (1) General Partnership; (2) Limited Partnership with limited liability; and (3) Joint Venture. Advantages of a partnerships profits from the business flow to the partner’s personal tax return and the business may lead to success with the help of two or more. Disadvantages may be one is responsible for another’s actions, any profits and assets must be shared, and disagreements can occur.…

    • 465 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Company Law

    • 1858 Words
    • 8 Pages

    In this case, Mary as Sole trader, she wants to expand her business with a more appropriate structure. As a sole trader, Mary has unlimited type of liability. Beside, to transfer the ability of interest, it would be difficult for Mary because she needs new contracts with creditor. Thus, it appears that depend factors such as creditor or public, Mary might meet the difficulty to expand her business. Furthermore, Mary also can have advantages about loan and can employ others to help her as a sole trader.…

    • 1858 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    The sole trader is the most popular form of business ownership. This kind of business is managed by only one individual who puts all of his savings and his time into making it a success. He is his own boss but it also has a negative aspect which is that he has to deal with a lot of responsibilities. For example window cleaning, plumbing.…

    • 321 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    b. Describe the organizational forms a company might have as it evolves from a start-up to…

    • 1067 Words
    • 5 Pages
    Good Essays
  • Good Essays

    GCSE BUSINESS KEY TERMS

    • 828 Words
    • 4 Pages

    Sole traders: The simplest form of business is typically an individual operating alone- a sole trader. However, a sole trader can actually employ people and still be classified as a sole trader. The important fact is that only one person is responsible for everything.…

    • 828 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Shooting an Elephant is one of the most famous essays by George Orwell that presents the situation of preindependence era in Burma. There are very subtle instances that act as a window for the readers into the social setup of that time. One could see that the Burmese hated the British in a pity and helpless manner. One of the few opportunities they had to express their anger was during the soccer game where the rules of society were over ruled by the rules of the game.…

    • 652 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The sole trader is the most popular form of business ownership. This kind of business is managed by only one individual who puts all of his savings and his time into making it a success. He is his own boss but it also has a negative aspect which is that he has to deal with a lot of responsibilities. For example window cleaning, plumbing.…

    • 1594 Words
    • 7 Pages
    Powerful Essays