TYPES OF

SECTOR BUSINESS NAME CONCEPT ADVANTAGES DISADVANTAGES

Profit
PRIVATE Organization SOLETRADERS Business owned by one 1.-Simple set up and operation 1.- Unlimited liability
person 2.- Total control of the business by the 2.- Little oportunity for tax planning
owner 3.- Soletraders can retire or die
3.-Keep all the profit 4.- Difficult to finance
4.- Business affairs are private

PARTNERSHIP Relation existing between 1.- Easy to establish
two or more persons 2.- Founds may be increased
3.- Can be cost - effective
4.-Provide more support
1.- Profit is going to be divided with the
other memeber
2.- Disagreements can occur
3.-Limitations to become a large
business
4.- Partnership may have a limited
life

COMPANY Business organization 1.- Is a separete, legal entity
2.- Perpetual existence
3.- Losses are shared by everyone
4.- The substantiation rules do not
apply
1.- Companies are complex to administer
2.- Cannot distribute losses to individuals
3.- Regulated by complex corporations laws
4.- Can be constly to wind up

CORPORATIONS Are incorporated business 1.- Can obtain more capital 1.- Incorporation is costly
2.- Reduce costs of benefits 2.- They are highly regulated
3.-It attracks more investors 3.- It could result a double taxation
4.- Owners have liability 4.- Is not easy to control

PRIVATE LIMITED Offers a limited liability 1.- Tax advantages 1.- Lack of privacy
COMPANY to its share holders 2.- Business continuity 2.- Not trading
3.- It is better to manage 3.- Dilution of power
4.- Limitation of liability 4.- Restricted capital raising

PUBLIC LIMITED Offers a limited liability 1.- Access to capital 1.- Lost of confidentiability
COMPANY to its share holder, it is 2.- Liquidity 2.- Loss of control
managed by the government 3.- Profit and tax advantages 3.- Profit sharing
4.- Easy to make acquisitions 4.- IPO expenses

Non profit
organizations PRESSURE GROUPS Organizations of people who 1.-Share own objective 1.-Government against the organization
 believe in the same comes
Organizations financed by the
QUANGOS government but they act with
freedom
CHARITY Orgaizations with generous
PUBLIC actions for the society
OPPERATIONAL NGO Organization that is not part of
the government and was not
founded by states
REGULATORS It is a public entity which is in
charge of making the
companies to be in order
PRIVATE
AND
PUBLIC
ENTERPRISES A projector undertaking one
PPP that requires boldess or effort
PUBLIC
CORPORATIONS A company whose shares are
publicly traded and are used to
held by a large number of
share holders
2.- They can have free communication
3.- They can make a choice
4.- Control their behaviours
1.- Easy to finance
2.- More freedom and less responsabilities
for the government
3.- Rfficiently controlled by privet workers
4.- Less problems
1.- Jurisdiction of charity
2.- Advice
3.- Avoice taxes
4.-They have founds with out
borrowing
1.- It is the most higly visible sector
2.- It excludes government
representatives
3.- Freedom of speech against the
government
1.- They dont have to pay taxes
2.- They have the support of the
government
3.- Monitor private companies
4.- They influence over the customer
1.- Speedy, efficient
2.- Value for money for the taxpayer
3.- Efficiences from integrating
construction for public services
4.- Innovation in the provition of
public services
1.- Shares are being sold to the general
public
2.- Limited liability
3.- The load of work is being divided
among the shareholders
2.- Their opinion may be not accepted
3.- They can not intimidate
1.- More compromise with the government
2.- More regularized
3.- Bureaucracy
4.- Government might retract of financiong
it
1.- Exclusive for charity
2.- No profti
3.- Limited trading
4.- Less suport
1.- Problems with the government
2.-No support from the government
1.- Have a lot of responsability
2.- It is a dependence of the government
3.- HW burrocracy
4.- May nit be efficient
1.- Contract renegotiation
2.- Performance enforcenat
3.- Political aceptability
4.- Tendering and negotiation
1.- Accounts of the business could not be
keep secret
2.- If it is a large company bankrupty chances
would increase.