Chapter 2 Types of Business Entities

Sole-Proprietorship

Partnership

Corporation

Publicly Held Companies

NGO

Sole-proprietorship

Partnership

Corporation

True

False

False

True

Expanding the customer base

Reducing production costs

Improving employee satisfaction

Streamlining internal processes

There can be more than one employer

It is the most common form of ownership

A business that is owned by one person

There may be more than one employee

An advantage for shareholders is having limited liability

As co-owners of a company, shareholders have equal voting rights

They own and control private and public limited companies

They are always paid dividends for investing in the company

Public Limited Company

Private sector company

Limited liability company

Privately held company

Economic

Environment

Cultural

Politic

Social

An organisation owned by the state or government

An organisation owned by private shareholders only

An organisation owned by shareholders who can trade their shares on a stock exchange

Any business that carries ‘PLC’ after its name