Types of Business Organisation, - Coggle Diagram
Types of Business Organisation
Easy to set up as there are few legal requirements.
Must register for self-assessment income tax.
If business name differs from sole traders name, the name must be registered with the CRO
No seperate legal entity
Deed of partnership:
register with CRO + Revenue
run business together
4) salary of each partner
1) each partners role in business
2) how profits will be shared
3) procdure for new partners + leaving partners
Private Limited Company
Designated Activity Company (DAC)
Company Limited by Guarantee (CLG)
Company Limited by Shares
Unlimited Company (UC)
Certificate of Incorporation
E.g. Dunnes Stores Ltd
owned and run by its members
each member = equal say
Must register with:
Register of friendly societies
one vote per person
co-operation tax - 12.5%
E.g. Templeogue credit union
State Owned Enterprise
By passing an Act of the Oireachtas
The government registers the company with the CRO and the government is a shareholder.
Provide Essential Services.
Income for the Government
Lack of Profit Motive.
Public Limited Company
When private limited company or other form of business seeks a stock exchange listing or quotation.
They must have a good trading history
Ability to Borrow.
Difficult to Set Up.
Lack of Confidentiality.
Finance - franchisee invests
franchior has control - franchisee manages franchise
annual fee + share of profits paid to franchisee
breach of agreement
Strategic Alliance / Joint Venture
When all parties enter into a contract to work together on a business project.
For a specified period of time or for a specific project
Changing Organisational Structure
To acquire skills
To reduce risks
To raise finance