IB Business management worksheet 1.2.

1. Complete this chart. 8 points

Organiza on type De ni on / features advantages disadvantages

Sole trader A person who runs a Make all the choices Take all the risk,
business on their on their own, when facing
own as individual exible working challenges you need
and is self employed hours, don’t need to to solve it yourself.
be afraid that May be limited
colleges may divulge scope for expansion
some private due to the limited
informa on out me and money you
are willing to put in.
Last but not least,
the focus will be
more on having
su cient cash daily
than on looking to
the future
Partnership From by two or Have more varied More di cult to get
more people service because an agreement
(friends, associates, there’s more people between more
people with familiar in the business so people
and related skills) there’s people from
di erent aspect and
good at di erent
things
Corpora on The business is a 1. Finance is more Must obey the laws
limited liability readily available of the land and pay
company. The than for sole taxes
business and the traders and
owners of the partnerships.
business are legally 2. Inverter have
separated and the limited liability
liability of the 3. There is
company is dis nct con nuity
from the liability of 4. There are
those who own it possiblili es
5. Establish
organiza onal
structure exists
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 For-pro t social An organiza on with 1. A favorable legal 1. Decisions making

enterprise many similari es to status is achieve is complex and
a normal social 2. A strong me consuming
enterprise communal 2. Capital may be
iden ty exists insu cient for
3. The stakeholder growth
community 3. Capital may be
bene ts insu cient for
nancial strength
Non-pro t social An organiza on with 1. Help people and 1. Funds can be
enterprise many similari es to cause in need irregular
a normal social 2. Foster a 2. Intense lobbying
enterprise philanthropic from non-pro t
sprit in the social enterprise
community and can lead to
informed socially
discussions in the undesirable goods
community about 3. Some mes the
alloca on of employees of
resource non-pro t social
enterprise have a
passion and zeal
that ill serve the
organiza on on
its cause

2. A recent visit to London convinced you that a tradi onal Bri sh pub would bring in lots
of business in Taipei. Exis ng bars and restaurants don’t capture the unique ambiance of
a real pub, and lack the variety of food and drink on o er in the tradi onal se ng.
Explain which type of organiza on you would use to open this kind of business in Taipei.
6 points

3. You have no ced that Taipei commuters are plagued by excessive tra c jams which
feature major arteries clogged with scooters, working trucks, private cars and buses. The
MRT is not equipped to handle the over ow. You propose a “ring road” that surrounds
the city, open only to passenger cars and large motorcycles. The project will take 5 years
to complete, and cost millions of dollars. For the city to accept your proposal, you must
choose a type of organiza on, then jus fy your choice. 6 points
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