3. Introduction
This topic will explore different types organisations,
advantages as well as disadvantages of those types of
organisations.
The topic will also explore how to be competitive in a
business environment. SWOT analysis will be used to
analysis the business standing in the market.
Another factor will be a look on the legal and
professional regulations which a business will have to
adhere to
4. Module 1
Explaining the structure and roles of different types of
organisations within their own industry in South Africa
5. Unit 1.1 Types of organisations
Sole trader/ Sole proprietor: Owned and managed by One person
Partnership: 2 – 20 partners
Company : Public Company (Ltd)- minimum of
7 to unlimited shareholders (not for level 2 )
: Private limited company (Pty Ltd) - 1-50 shareholders
Close corporation(CC):1- 10 members
7. Sole trader
Advantages
• Business registration is not required
• Business operation can start immediately
• The owner receives all profits
• Accounts do not have to be professionally audited
Disadvantages
• The owner is self-reliant
• The owner is personally liable for business debts
• The owner’s personal assets can be claimed against
business debts
• The business stops on the death of the owner
• The business name is not protected
8. Partnership
Advantages
• Business registration is not required
• Business operation can start immediately
• The partners share profits
• Accounts do not have to be professionally audited
Disadvantages
• The partners are personally liable for business debts
• The partners’ personal assets can be claimed against
business debts
• The business name is not protected
9. Private Limited
company (Pty Ltd)
Advantages
• Business registration is not required
• Business operation can start immediately
• The partners share profits
• Accounts do not have to be professionally audited
Disadvantages
• The partners are personally liable for business debts
• The partners’ personal assets can be claimed against
business debts
• The business name is not protected
10. Close corporation
(CC)
Advantages
• Registration is straightforward
• Accounts do not have to be professionally audited
Disadvantages
• Accounts must be formally audited
• Maximum of 10 members
