what are the primary advantages and disadvantages of sole proprietorships and partne 556134

The corporate form of organization has many variations around the world. The exact laws and regulations differ from country to country, of course, but the essential features of public ownership and limited liability remain. These firms are often called joint stock companies, public limited companies, or limited liability companies, depending on the specific nature of the firm and the country of origin. Table 1.1 gives the names of a few well known international corporations, their country of origin, and a translation of the abbreviation that follows the company name.

Type of Company

Company

Country of Origin

In Original Language

Translated

Bayerische Moterenwerke (BMW) AG

Germany

Aktiengesellschaft

Corporation

Dornier GmBH

Germany

Gesellschaft mit Beschraenkter Haftung

Limited liability company

Rolls Royce PLC

United Kingdom

Public limited company

Public limited company

Shell UK Ltd.

United Kingdom

Limited

Unilever NV

Netherlands

Naamloze Vennootschap

Joint stock company

Fiat SpA

Italy

Societa per Azioni

Joint stock company

Volvo AB

Sweden

Aktiebolag

Joint stock company

Peugeot SA

France

Société Anonyme

Joint stock company

C O N C E P T Q U E S T I O N S

a What are the three forms of business organization?

b What are the primary advantages and disadvantages of sole proprietorships and partnerships?

c What is the difference between a general and a limited partnership?

d Why is the corporate form superior when it comes to raising cash?

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