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.
Legal structure
of businesses
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
Cambridge University Press is not responsible for the accuracy of the material where changes are made to the text.
Cambridge Preliminary Business Studies
© Hickey, Nader, Williams 2005
Chapter 4: Types of Business Entity
Worksheet 4.1: Page 1
NAME:
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
© Hickey, Nader, Williams 2005
Chapter 4: Types of Business Entity
Worksheet 4.1: Page 2
ANSWER
2 a
b
c
d
e
Company
Partnership
Public company
Private company
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
© Hickey, Nader, Williams 2005
Chapter 4: Types of Business Entity
Worksheet 4.1: Page 3