Please enable JavaScript.

Coggle requires JavaScript to display documents.

BUSINESS STRUCTURE (Chain of a business Structure (Private Sector…

- - - - Limited Liability
        
        There is continuity
        
        Risk of takeover, as shares are publicly sold
      - Shares can be sold publicly
      - In terms of acquisition investment, it is easier to purchase shares from the company.
      - Usually a larger Corporation
    - - Sometimes called as family corporation
        
        An example is Comcast
        
        An example is New Prosperity Plastic Products
      - Shares of the company are often owned by the family members and close relatives and friends
      - Limited Liability: Owner and company are separate entities
        
        Continuity in the event of death
        
        The liability of the shareholders are up to their investments
    - - The owner is the business
      - Unlimited Liability
        
        It is up to the owner's assets
      - If the owner dies the business dies
      - Owner keeps all profits
    - - If one partner dies or goes bankrupt, the partnership will end
      - Unlimited liability: The partnership and owners are considered a single entity.
      - Deed of Partnership: A form of agreement made by the partners of the business.
      - Share the profit
      - They divide the profit and losses based on their agreement
      - Unincorporated business
    - - Corporated business
      - legal formalities of setting up a corporation:
        
        Memorandum of Association
        
        Name of the company
        
        Address of the head office
        
        Aims of the business
        
        Maximum share capital of the company
        
        Articles of Association
        
        Management and Workforce
  - - - Government revenue comes as tax used to help our environment
        
        Direct tax
        
        Tax on income & wealth
        
        Indirect tax
        
        Tax on goods & services