An independent legal entity owned by shareholders is generally called a corporation or a company. A corporation is very different in structure to a sole proprietorship or a partnership. Shareholders decide on how the corporation is run and who manages it. Corporations are more complex and may include more people in the decision-making process.
Read the section on Privately-Held Corporation in Forms of Business Ownership [1] to find out more about this form of business ownership and its pros and cons. You may find it helpful to complete the self-reflection questions at the end of the reading.
- Search on the internet (or through a local business support agency) to find out:
- What terminology is used in your country for a business that is owned and run by shareholders
- What the main features are of this sort of business entity in your country
- Thinking about your business idea and the factors that you thought were important in choosing a business ownership model, identify:
- Two advantages of using this form of business ownership for your start-up business
- Two disadvantages of using this form of business ownership for your start-up business
- In your learning journal blog:
- Make notes on what you have found out and cite your sources so that you can refer to it again. You will use this information for the learning challenge.
- Remember to tag or label your post using the course code: IENT102 (This is needed to harvest a link to your blog post in the course feed.)
- Look in the course feed to see what others have written.
- ↑ VUSSL: The Business Environment
