—Look at the sentences below and the following introduction about the types of ownership.—

—Look at the sentences below and the following introduction about the types of ownership.

—Which type of ownership does each sentence 1—7 refer to？

—For each sentence 1—7, mark one letter (A, B, C or D) on your Answer Sheet.

—You will need to use some of the letters more than once.

A

Partnerships

On the whole, this is not a popular form. of business organization, but it is often used by people in the professions, like doctors, dentists or lawyers, to expand their business. Greater efficiency is possible because people in this sort of association can spend their time doing what they are best at. If one person is sick, then the remaining partner(s) can carry on the work. The main disadvantage is that even with this form. of ownership, the amount of money available to the business may be limited. If people quarrel or disagree over decision making there can be problems and serious delays.

B

Public (Plc) Companies

These are the largest businesses in the private sector. There is no limit to the number of people holding shares in it and many of the larger companies have their shares listed on the stock exchange. The advantage of big businesses like this is that they find it easier to raise money as banks consider them a 'good risk'. There are strict laws governing the setting-up of this kind of business and each year the company has to publish its accounts. The larger such businesses grow, the more difficult it is to control them. Workers in such businesses may feel that management doesn't understand their problems.

C

Private (Ltd) Companies

Such businesses are net allowed to sell shares to the public. They must consist of at least two members, but there is no upper limit to the numbers who own the company. The larger size makes it possible for such companies to borrow more money from the banks or from issuing additional shares to its members. The advantage is that such a business is able to offer its members limited liability (responsibility) for debts and losses. Many companies of this type exist in England, Europe and the U. S.

D

Sole Proprietorships

Sole proprietorships, the most common business form, consist of one person doing business with no legal charter. While they offer the owner great freedom and are easy to form, they also present grave financial risks. General partnerships are merely proprietorships with multiple ewers.

There is no limit to the number of people holding shares in it.