Business Ownership Structures

Vocabulary flashcards defining common forms of business organizations, their ownership, advantages, and drawbacks based on the lecture notes.

Partnership

A business owned by two or more people who share management, responsibilities, capital and decisions, but may have conflicts and unlimited liability.

Cooperative

A business owned by members who manage it democratically and share profits equally, costs and risks, but may make decisions slowly.

Private Limited Company

A business owned by shareholders and managed by directors, with limited liability and shares not sold publicly, making funds easier to raise.

Public Limited Company

A business owned by shareholders and managed by a board of directors, with limited liability and shares sold publicly, allowing large capital to be raised, but with complex management and legal requirements.

Franchise

A business where a franchisee buys a licence to use a parent company's brand and receives training, but follows its guidelines, pays fees and has limited control.