1.6

Question 1

Appropriateness of different

forms of ownership

Answer 1

Getting started

● The type of organisational structure that owners choose for their
businesses will depend on a number of factors, such as business
objectives and the type of business organisation.
● Generally, as a business grows, the structure of the business and its legal
status changes.

Question 2

Factors affecting the different forms of ownership

Answer 2

Factors affecting the different forms of ownership

● Growth
● Size
● The need for finance
● Control
● Limited liability