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level: 1.4 Type of business organization

Questions and Answers List

Question	Answer
Organizations controlled and managed by the government	Public sector
Businesses owned and managed by individuals or groups of people	Private sector
The owners/shareholders are only liable for the amount which they invested	Limited liability
The owner of the business can be held fully responsible for any debts the business has	Unlimited liability
One that doesn't have a separate legal identity from it's owner	Unincorporated business
A company is a separate legal unit from its owners	Incorporated business
Owned by one person and have unlimited liability	Sole trader
Owned by multiple people and have unlimited liability	Partnership
One or more shareholders, shares can't be sold to public and have limited liability	Private limited company (ltd)
Two or more shareholders, shares can be sold to public and have limited liability	Public limited company (plc)
Owned by franchisor but controlled by franchisee and have limited liability	Franchise
Owned by two or more companies forming the venture and have limited liability	Joint venture
A business based upon the brand names, promotional logos and trading methods of an existing successful business	Franchise (definition)