4. Types of Business Organisation (GCSE)

Define 'shareholder'

Define 'limited liability'

Define 'dividend'

List THREE advantages of being a 'sole trader'

List THREE disadvantages of being in a 'partnership'

Is it easier for a PRIVATE limited company or a PUBLIC limited company to raise finance? Why?

What is the difference between a FRANCHISOR and a FRANCHISEE?

This type of well-known business sells its brand to other individuals / businesses. They then use the name and product of the well-known business.

• Sole trader

• Private Limited Company

• Franchise

• Joint Venture

To become this type of business requires completing a lot of legal documents. However, this business can only sell shares to friends and people they know.

• Partnership

• Private Limited Company

• Public Limited Company

• Joint Venture

This is when two businesses join together to make a new separate business, which combines both of these business' skills.

• Sole Trader

• Partnership

• Franchise

• Joint Venture