Answer:
1a) Busuness organization can be defined as an Enterprise set up for the purpose of making profit
b) There are four main types of business organization: Sole proprietorship, partnership, corporation and Limited liability
2a) Joint Stock Company is a Company whose shares can be bought and sold to different shareholders
b) Sole proprietorship is owned, controlled and managed by one man while partnership is a business formed and owned by two to twenty people
Explanation:
1a) Business organization is an Enterprise set up for commercial purposes. It is usually set up to meet the need of his consumers, in order for it to make profit. It uses economic resources to provide goods and services for the people
b) The main types of business organization are Sole proprietorship, owned and set up by one man, also called one man business; Partnership, owned and set up by two to twenty people called partners; Corporation, set up by the government to meet the social welfare of the people and lastly Limited Liability Company runned by shareholders, and managed by board of directors elected by the shareholders.
2a) Joint stock company is an organization whose shares are bought and sold by different shareholders. It is usually a limited liability, where the shareholders only loose their investment in the business, in case of liquidation and never lose their personal asset. It is also a legal entity, that is, the business can sue and be sued in it's own name. The shareholders elect Board of directors who manage the business on their behalf. And the shareholders receive a profit called Dividend.
2b) Sole proprietorship, also known as Sole trading is a one man business. The Capital is sourced by one man, who also runs and manage the business all by himself. He takes the risk and profits alone and also make decisions alone unlike a Partnership business set up by two to twenty persons called partners. They finance the business together, they take decisions together and also share the risk and profits together. In Sole trading, Decision making are faster, because only one man does the decision while in partnership where all the partners have to agree before any major decision can be taken, decision making can be slower. Also, they share the risk and profits together in Partnership unlike sole trading, where one man takes the profits and the risk alone.
