Cambridge Business Studies Teacher CD Preliminary

NAME:

Worksheet 4.1

Legal structure and industry classification

1 Complete the diagram below so it shows the four main types of legal structure for businesses. Listed below are characteristics for the types of legal structure. Determine which characteristics correspond with each of the four legal structures. Add these characteristics to your diagram.

Limited liability / Unlimited liability
One owner / Ownership is limited
Decision-making is shared among owners / Limited liability
Unlimited liability / Public purchase shares through the ASX
Decision-making is sole responsibility of owner / Must report financial data to government organisations
Board of directors is responsible for ensuring financial performance is reported to relevant government organisations / Profits are returned to shareholders as dividends

2 Unscramble the letters below to reveal five of the different types of legal structure a business may have.

a CMAYONP

b PRHPSRNATIE

c PCUOMBPLAINCY

d CEMTPAVANPYIOR

e OTAERDESRL

3 Classify the businesses listed below based on their industry type.

a Ben has established a home-cleaning business.

b Lucille is employed as a waitress at Harbour View Cafe.

c El Gourmet is a maker of fine European-style breads.

d Tony and Antoinette have purchased an apple orchard in country New South Wales.

e Tel World Communications now offers customers news, sport and weather services through its mobile phones.

f Nursery Plus is recognised as one of Australia’s leading garden stores.

Cambridge University Press is not responsible for the accuracy of the material where changes are made to the text.

Cambridge Preliminary Business Studies Chapter 4: Types of Business Entity

ANSWER

2 a Company

b Partnership

c Public company

d Private company

e Sole trader

Cambridge University Press is not responsible for the accuracy of the material where changes are made to the text.

Cambridge Preliminary Business Studies Chapter 4: Types of Business Entity