Forms of Ownership (Grade 11 NSC Matric Business Studies): Flashcards
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Form of ownership
Form of ownership
Legal structure of business - how it's owned and controlled
Unlimited liability
Unlimited liability
Personal assets can be used to pay business debts
Sole proprietor ownership
Sole proprietor ownership
One person owns, manages, and operates the entire business
Partnership definition
Partnership definition
Two+ people jointly own and operate a business together
Close Corporation member limit
Close Corporation member limit
Between 1 and 10 members maximum
Private company share sales
Private company share sales
Cannot sell shares to the general public
Public company share capability
Public company share capability
Can offer shares for sale to the general public
State-owned company focus
State-owned company focus
Provide essential public services, not purely for profit
Non-profit company profit rule
Non-profit company profit rule
Can earn money but cannot distribute profits to members
Limited liability
Limited liability
Shareholders only risk the money they invested in shares