Forms of Business Organisation

What this unit covers

The unit compares the main ways to organise a business. The mind map Chapter 15: Business Entities Overview sets out the corporation, the limited liability company, the general partnership, the limited partnership and the sole proprietorship. Other maps look at limited liability partnerships, unincorporated associations, incorporated societies and European business organisation structures.

Where to start

Begin with a broad map such as Parties and Status, which separates limited companies and partnerships and notes that a company has its own legal identity. Close Business Associations adds agency, partnership, the corporation, the LLC and the limited partnership, including the point that partners are liable for an agent's acts within the scope of authority.

Going deeper

• The flashcard deck Corporation covers ultra vires acts, derivative actions and piercing the corporate veil.
• The deck Partnership covers management and voting rights, fiduciary duties, and joint and joint and several liability.
• The deck Corporation (1) covers the board of directors, officers and the duty of care.
• The deck BLAW PP19 Forms of Business Organization goes through the four types of business organisation, including the advantages of a sole proprietorship.

The notes headed CORPORATIONS. cover characteristics, advantages of the corporate form and a comparison with a general partnership. One listed deck is drawn from a business law test and the resources mention the CPA, so professional candidates will find familiar ground.

Using quizzes and maps together

1. Read a map and say each branch aloud from memory.
2. Take a quiz such as Business Structure- Formation or Types of business entities UK-style questions on choosing an entity, for example Business Law- Business Structure (Selection of a Business Entity).
3. Return to the map for any question you missed.
4. Use flashcards for definitions and liability rules.

Where it sits

This unit belongs to the strand Business Organisations and Company Law, within Commercial and company law. Choose one resource today and see how far you get, then make your own cards for what is missing.