BUSINESS ORGANIZATIONS

THE PRIVATE SECTOR

5 MAIN FORMS OF BUSINESS ORGANIZATION

SOLE TRADER PARTNERSHIP LIMITED COMPANIES COOPERATIVES

PRIVATE PUBLIC

SOLE TRADERADVANTAGES

FEW LEGAL REGULATIONS YOU ARE YOUR OWN BOSS

MORE FREEDOM

CLOSER CONTACT WITH CUSTOMERS ALL THE PROFITS FOR YOU

SECRECY

SOLE TRADERDRAWBACKS

NO ONE TO DISCUSS BUSINESS MATTERS WITH UNLIMITED LIABILITY

LIMITED FINANCE

NO SPECIALISATION HARD TO EXPAND

NO CONTINUITY AFTER SOLE TRADER’S DEATH

WANNA HAVE SOME AMERICAN

HUMOR?…

PARTNERSHIPSADVANTAGES

MORE CAPITAL RESPONSABILITIES SHARED MOTIVATION NO SPECIALISATION

PARTNERSHIPSDRAWBACKS

NO SEPARATE LEGAL IDENTITY – IF ONE DIES, THE PARTNERSHIP ENDS

UNLIMITED LIABILITY DISAGREEMENT DISHONEST OR INEFFICIENT PARTNER

BUSINESS GROWTH LIMITED TO 20 IN MOST COUNTRIES

LIMITED PARTNERSHIPS

LIMITED COMPANIES

PRIVATE PUBLIC

PRIVATE

SHARES LIMITED LIABILITY CAN KEEP CONTROL OF THE BUSINESS

PRIVATE

LEGAL MATTERS SHARES CANNOT BE SOLD TO OTHERS WITHOUT THE

AGREEMENT OF THE OTHER SHAREHOLDERS

FORGET ABOUT SECRECY! SHARES CANNOT BE OFFERED TO THE PUBLIC

http://www.polaris-india.net/

PUBLIC

LIMITED LIABILITY

A SEPARATE LEGAL UNIT – INCORPORATED BUSINESS

VERY LARGE CAPITAL SUMS

NO RESTRICTION ON THE BUYING, SELLING OR TRANSFER OF SHARES

HIGH STATUS – MORE ATTRACTIVE

PUBLIC

LEGAL FORMALITIES MORE REGULATIONS AND CONTROL

THEY COULD BECOME DIFFICULT TO CONTROL AND MANAGE

SELLING SHARES TO THE PUBLIC IS EXPENSIVE

“REAL OWNERS” LOSE CONTROL OVER THE BUSINESS

JUST TWO SAMPLES OF PLCs

http://www.youtube.com/watch?v=EnUKurl7Fog

http://www.youtube.com/watch?v=RZOKn-2vZn0

COOPERATIVESMAIN FEATURES ONE VOTE

ALL RUN THE BUSINESS (DAY-TO-DAY WORK)

PROFITS EQUALLY SHARED

Producer co-operative

Retail co-operative

OTHER FORMS OF BUSINESS ORGANIZATIONS

CLOSE CORPORATIONS

JOINT VENTURES

FRANCHISING

END OF PRESENTATION - END OF PRESENTATION - END OF PRESENTATION - END OF PRESENTATIONALL RIGHTS RESERVED

Le fin