Types of business organizations
Unincorporated business
Are not legally registered companies
Sole traders
Partnership
individuals who own thir own buisness
Are a small organizations (partners) that own a business
The deep of partnership
is a legally binding document, drwan up by partners and all the agreements are there.
Incorporated business
Business that have a legal identity to their owners
Private limited company
Public limited company
the ownership of the business is kept private
issue their shares to the general public
Issue their shares to private investors
anyone can become a sharholder
Franchise
Joint venture
arrangement between a public limited company and a private limited company
Franchisee
Franchisor
the new business
the existing business
Formal agreement between 2 organisations to create and run a jointly owned project
Risks are shared by both organisations
the profit is split between the 2 rganisations
Public sector organisation
organisations owned and run by the govermet
ex: schools, hospitals, fire and police stations.