IGBizStudies

Apr 30, 20212 min

What are the advantages and disadvantages of different business organization types and forms

Updated: Jul 2, 2023

There are four (4) types of business organization

  1. Sole trader

  2. Partnership

  3. Private Limited

  4. Public Limited

Forms of business organisation

  1. Joint ventures

  2. Franchises

  3. Social enterprise

  4. Public corporations

Joint ventures and franchises are how different business organisations operate a business together. Unlike most businesses, social enterprises and public corporations primary objective are to serve the community. These businesses would have to select a type of business organisation to setup to operate its business.

PAST YEAR QUESTIONS

  1. Explain two possible disadvantages to Samuel of operating as a sole trader business. (6 marks) Oct/Nov 2021/13

  2. Explain two advantages to Pamela of operating as a sole trader.(6 marks) May/June 2021/12

  3. Outline two disadvantages of being a partnership (4 marks) May/June 2020/11

  4. Identify and explain two possible reasons why Anna and James formed a business partnership (4 marks) Feb/Mar 2019/12

  5. Do you think a partnership is the best form of business organisation for a new business? Justify your answer. (6 marks) May/June 2022/12

  6. Identify and explain two disadvantages being a private limited company (4 marks) Feb/March 2018/12

  7. Identify and explain two possible advantages of being a private limited company (4 marks) May/June 2018/11

  8. Identify and explain one advantage and one disadvantage becoming a public limited company (6 marks) May/June 2019/11

  9. Identify and explain one advantage and disadvantage of forming a joint venture (6 marks) Oct/Nov 2019/13

  10. Do you think DGC should open shops in country Z as a franchise? Justify your answer (6 marks) Feb/Mar 2019/12

  11. Do you think George should buy a BunchesRUs franchise? Justify your answer
         (6 marks) May/June 2019/12

  12. Do you think selling more franchises is the best way for Filltum to expand? Justify your answer (6 marks) May/June 2019/12

  13. Outline two advantages to DSY of being a private limited company. (4 marks) Oct/Nov 2020/12

  14. Outline one advantage and one disadvantage to Nadia’s business of selling franchises to expand. (4 marks) May/June 2021/13

  15. Explain two possible advantages to DCN of setting up a joint venture with the other business. (6 marks) May/June 2021/13

  16. Do you think a public limited company is a better form of business organisation for a growing business than a private limited company? Justify your answer. (6 marks) Feb/Mar 2022/12.

  17. Outline two advantages of TJM being a private limited company. (4 marks) May/June 2022/13

  18. Outline how having limited liability might benefit DNG’s shareholders. (4 marks) Oct/Nov 2022/11

  19. Explain two possible advantages to Beena of buying a franchise. (6 marks) Oct/Nov 2022/11

  20. Explain two advantages to EQR of selling franchises as a way to grow its business. (6 marks) Oct/Nov 2022/12

  21. Do you think the amount of money needed is the most important factor for a sole trader to consider when deciding on an appropriate source of finance? Justify your answer (6 marks) May/June 2021/11

  22. Explain one advantage and one disadvantage to Lola and Raul of being in a business partnership. (6 marks) Oct/Nov 2020/13

  23. Do you think a joint venture is the best way for a business to enter a new market in another country? Justify your answer. (6 marks) Oct/Nov 2020/11

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