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 [1] 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.


Research activity

  • 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.

  1. VUSSL: The Business Environment