Question

Give 5 examples of business activities....​

Answer 1

Answer:

1) Sole proprietorship

-A sole proprietorship is a business that is formed and operated by one person. This type of business is the easiest to form; a reason why it takes up 74 percent of businesses in the USA alone.

2) Partnerships

-Unlike sole trading, a partnership is owned and operated with a minimum of two and a maximum of 20 members. It is also easy to form and operate so long as the agreements are spelled out in a good time. Again, it does not have any legal provisions to fulfill before set up and capital is easily raised from partners.

3) Corporation

-This is a big business owned by shareholders or investors. Its Initial capital is easy to raise as shares with par value are floated on the stock exchange for the public to purchase. This type of business have Limited Liabilities i.e. unless the corporate veil is pierced, shareholders’ assets can never be claimed by creditors.

4) Multi-national corporations (MNCs)

-These are global or international businesses that manufacture and sell products in different countries. MNCs are large and all their worldwide operations centrally controlled.

With big investments in foreign countries, Multi-national corporations import goods and services, allow local producers in a foreign country to manufacture their products and have assembly operations and manufacturing plants in foreign countries.

5) Not for profit organizations

-are also referred to as nonbusiness entities. They are formed by people with a common interest and are not profit-oriented. Most of them pursue a social cause that is beneficial to society.

Not for profit organizations operate under a ‘nondistribution constant’ i.e. surplus revenue is used to meet objectives, goals, and mission instead of it being distributed as dividends to shareholders. To avoid taxation, the non-profit organization should have charitable status or apply for tax exemption.

Explanation: