An independent legal entity owned by shareholders is generally called a corporation or a company. A corporation is very different in structure to a sole proprietorship or a partnership. Shareholders decide on how the corporation is run and who manages it. Corporations are more complex and may include more people in the decision-making process.
Read the section on Privately-Held Corporation in Forms of Business Ownership  to find out more about this form of business ownership and its pros and cons. You may find it helpful to complete the self-reflection questions at the end of the reading.
- Search on the internet (or through a local business support agency) to find out:
- What terminology is used in your country for a business that is owned and run by shareholders
- What the main features are of this sort of business entity in your country
- Thinking about your business idea and the factors that you thought were important in choosing a business ownership model, identify:
- Two advantages of using this form of business ownership for your start-up business
- Two disadvantages of using this form of business ownership for your start-up business
- In your learning journal blog:
- Make notes on what you have found out and cite your sources so that you can refer to it again. You will use this information for the learning challenge.
- Remember to tag or label your post using the course code: IENT102 (This is needed to harvest a link to your blog post in the course feed.)
- Look in the course feed to see what others have written.