Interactive workbook: Go back over this again - Exercise 1.3 – Types of business organization

Introduction

This matching exercise tests your understanding of the different features of the various types of business organizations to make sure that you can distinguish between them.

This exercise should be completed after reading pages 3-10 of Chapter 1.

Instructions

Match the features of each form of business organization to the business organization.

Once you have finished matching the items click on the button to check your answer.

a)	Audit requirement
b)	All business debts are debts of the owner
c)	Profits distributed to shareholders as dividends
d)	Owner has unlimited liability
e)	No formal set-up requirements
f)	Joint and several liability
g)	All business debts are debts of the partners
h)	No legal separation of business and owner
i)	Two or more persons in business sharing profits and losses
j)	Issue shares
k)	Ownership transferable by the transfer of shares to another person
l)	Owners’ liability limited to amounts paid to buy shares
m)	Detailed record-keeping requirements
n)	Run by one person
o)	If business fails, can lose all their personal as well as their business assets
p)	Partners’ liabilities unlimited
q)	Separate legal identity
r)	Owned by shareholders
r)	Run by directors
r)	No legal separation of business and partners
r)	Formal agreement recommended otherwise no formal set up requirements