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Business Organisations

Business Organisations

Assessment

Presentation

Business

12th Grade - University

Practice Problem

Medium

Created by

Denrica Lett

Used 10+ times

FREE Resource

11 Slides • 5 Questions

1

Business Organisations

by Mrs Lett

2

​Sole Proprietor

​Owned by one person

​Legally the owner and business are not separate, unlimited liability

​Capital is acquired through the owner

​Profit making motive

​Business closes upon death of owner/transferred through sale

3

​Sole Proprietor

​Recieves all profits and losses

​Pays personal income tax

Owner controls and manages everything​

​Equity is made up of capital and profits

​Subscribes to relevant local laws.

4

Multiple Choice

The sole trader is 

1

the same legal enitity as the business

2

not the same legal entity as the busines

3

motivated by social welfare of others

4

Gains capital through shares

5

​Partnership

​Owned by 2-20 persons called partners

​The owner and business are legally the same entity, however it is possible to have partners with limited liability

​Once at least one partner has unlimited liability

​Governed by the Partnership Act

​Motive is profit making

6

​Partnerships

​The business is transferred through admission or retirement of partners.

​​

​the business is not continuous but dies upon the retirement/death of a partner/admission of new partner

​Managed by partners and capital invested by partner

​Profits/losses shared among partners

​The partners pay personal income tax

7

Fill in the Blank

Partnerships can have at least .......limited partner

8

​Limted Liability Companies

​Owned by investors called shareholders of which there can be an unlimited amount

​The owners are legal separate from the business and therefore have unlimited liabiltiy

​Shares are easily transferable for public companies and need Board approval for private companies

​This makes the lifespan of the business continuous

9

​Limited Liability Companies

​Capital is acquired through the issuance of shares

​The company is managed by the Board of Directors

​Profits are shared through dividends

​It is governed by the Companies Act and a corporation tax must be paid by the company while personal income tax is paid by the shareholder

​This is called double taxation.

10

Poll

A major disadvantage of limited liability companies is 

unlimited liability

double taxation

limited liability

government interferance

11

​Cooperatives

​A group of persons called members who form an organisation to promote their socio-economic well being.

​​

​The owners are a separate legal entity from the business

​The business is managed through a board of directors

​Capital is raised through the issue of shares to members

Shares are not transferable

12

​Cooperatives

​They are governed by the Cooperatives Act

​Members receive funds through dividends and patronage funds.

13

Open Ended

What do you remember about Cooperatives?

14

​Non Governmental Organisations

​Usually run by a group of individuals or a company

​They are a separate legal entity from the NGO

​The lifespan is therefore continuous

​Their motive is helping people

15

​NGOs

​They are managed by a Board of Directors

​Capital is acquired through government funding and public support/fundraisers

​Income used to further the objective of the NGO

16

Multiple Choice

They are governed by 

1

Managers

2

Government

3

Board of Directors

4

A company

Business Organisations

by Mrs Lett

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