1. By Sweetness
Nkosi
University of
Johannesburg

2. Service Business
Carry out activities that are consumed by its
customers
Intermediaries
Sell goods and services
Producers
Create products and services used by other
individuals and businesses

3. BUSINESS ORGANIZATIONS: THE PRIVATE
SECTOR
Sole traders
Partnerships
Private limited
companies
Public limited
companies
Co-operatives
Close corporations
franchise

4. Choice of Suitable form of ownership –
A Crucial Decision
The form of ownership determines the -
Division of Profits
Extent of liability
Extent of Risk
Division of Power
Control of Owner
Long term commitment, cannot be altered
easily
FORMS OF OWNERSHIP DETERMINES…

5.  Ease of Formation
 Sufficient Finances
 Limited Liability
 Transferability of Interest
 Efficient Management
IDEAL FORM OF OWNERSHIP

6. SOLE PROPRIETORSHIP
A business owned and managed by one
individual; the business and the owner
are one and the same in the eyes of the
law

7. Owned by 2 or more persons
Least numerous business organization
Smallest proportion of sales and net
income
PARTNERSHIPS

8. CORPORATIONS
Corporations account
for 1/5 of all firms in
the U.S. and 90% of
all sales
A corporation is a
form of business
organization
recognized by law as
a separate legal entity
having all the rights
of an individual

9. Limited Liability Partnership & Company
Joint Venture
S-
Corporation
Nonprofit
Corporation
Franchise
Cooperative
Other Forms of
Business Ownership
UNT in partnership with TEA, Copyright ©. All rights reserved 8

10. What is Franchise?
A franchise is a business established by
one person who buys copyrights of
another firm and is allowed to produce
and distribute that product.
FRANCHISING

11.  Nature of Business
 Size and Area of Operations
 Degree of Control Desired
 Amount of Capital Required
 Degree of Risk Involves
FACTORS TO CHOICE OF
OWNERSHIP

12. www.slideshare.net/mytopics/presentation-on-business-
organisation
www.slideshare.net/aadityanagpa/forms-of-organisation-
27056960
www.slideshare.net/amanpreetbhamra/forms-of-ownership
www.slideshare.net/guestf6d4e7/forms-of-business-
organisation-pp
REFERENCES