Lesson 1

The different types of business structures.

Not for profit - co-operatives (NOT corporation), clubs, societies.

For profit -
a)sole proprietor,
b) partnership, private limited and public listed.
c) private limited
d) public company (public listed)

Understand the
a) key features of each structure,
b) the advantages and disadvantages
c) based on customer (eg Peter) needs and goals - able to recommend the most optimal structure.

Eg Peter goals :
a) continuity (therefore entity must be able to be continued upon his death)
b) provide stream of income for mother and sibling (independent of Peter's whim and fancy)
c) grow and expand ( how easy is it to borrow external funding)

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Note :

a) co-operative (one member one vote) is different from corporation (one share one vote).
b) tax liability : sole proprietorship and partnership - pay income tax as individual
c) private limited/public listed : pay tax as a company, shareholder pay tax as individual.