Forms of Business: Unincorporated vs Incorporated

The video tutorial explores different forms of business, focusing on private sector organizations. It distinguishes between unincorporated and incorporated businesses, highlighting key differences such as liability. Unincorporated businesses, like sole traders and partnerships, have unlimited liability, while incorporated businesses, like private limited companies, offer limited liability to shareholders. The tutorial also discusses the benefits and drawbacks of each business form, emphasizing the protection and stability offered by incorporated businesses.

What is the primary focus of the video tutorial?

• Government agencies

• Public sector organizations

• Private sector organizations

• Non-profit organizations

What is a key characteristic of unincorporated businesses?

• Unlimited liability

• Separate legal identity

• Limited liability

• Public ownership

In incorporated businesses, who are the owners?

• Managers

• Suppliers

• Shareholders

• Employees

What is a benefit of forming a limited company?

• No need to disclose information

• Unlimited liability

• Minimal paperwork

• Protection of shareholders

What happens to a limited company if shareholders change?

• The company dissolves

• The company continues

• The company must re-register

• The company loses its legal identity

What is a major advantage of being a sole trader?

• Complex legal requirements

• High administrative costs

• Easy to set up and close

• Unlimited liability

What is a significant drawback of being a sole trader?

• Easy access to finance

• High employee turnover

• Limited liability

• Unlimited liability

What is required to establish a partnership?

• A government license

• A partnership agreement

• A board of directors

• A public offering

What is a common feature of partnerships?

• Limited liability

• Unlimited liability

• Public ownership

• No legal agreement

What is a potential downside of a partnership?

• Complex setup process

• Unlimited liability

• Limited decision-making power

• High administrative costs