EXERCISE: TYPES OF BUSINESS OWNERSHIP

Fill in the blanks with the correct answers

Features Liability Advantages Disadvantages

1) • A business owned by • Unlimited Liability • •
one person only.
• Capital  from own
savings, bank loan, • •
borrowings from
family/friends.
• •

2) • • Unlimited Liability • • • Partnership Agreement

PARTNERSHIP (Ordinary • Partnership Act
partnership)
• Limited Liability • •
(Limited
partnership)
• •

3) • Business owned by 2 • ______________ • • • To register, limited company must

to 50 shareholders Liability submit:
and privately owned 1)Memorandum of Association
(i.e. shares not sold on • • (objective of business).
Stock Exchange). 2) Articles of Association (how
business is run).
to the Registrar of Company.
• Once approve, Certificate of
b) PUBLIC • • _______________ • • Incorporation will be issued.
LIMITED Liability • ________________  an invite
COMPANY for public to buy shares.
(‘Plc’/ ‘Ltd’) • • • ________________  profit of
limited company.
• ________________  capital of
limited company.
• ________________  owners of
limited company.
• ________________  people
who manage the limited company.