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1.2 Types of business organization (For-profit commercial organizations…

- - - - Few legal formalities
      - Profit taking
      - Being your own boss
      - Personalized service
      - Privacy
    - - Unlimited liability
      - Limited sources of finance
      - High risks
      - Workload and stress
      - Limited economies of scale
      - Lack of continuity
  - - - Financial strength
      - Specialization and division of labor
      - Financial privacy
      - Cost-effective
    - - Unlimited liability
      - Lack of continuity
      - Prolonged decision-making
      - Lack of harmony
  - - - Raising
      - Limited liability
      - Continuity
      - Economies of scale
      - Productivity
      - Tax benefits
    - - Communication problems
      - Added complexities
      - compliance costs
      - Disclosure of information
      - Bureaucracy
      - Loss of control
    - - Memorandum of Association
        
        brief document outlining the fundamental details of the company
      - Articles of Association/Incorporation
        
        internal regulations and procedures, BOD, shareholders, Annual General Meeting
    - - Shareholders elect the board of directors BOD
      - Shareholders ask questions to the CEO
      - Shareholders approve last years' financial accounts
    - - able to advertise and sell its shares to the general public via stock exchange
    - - cannot raise share capital from the general public