LEARNING OBJECTIVESAfter studying this chapter, you should be able to:
3.1 understand the different forms that business entities take
3.2 define the term ‘sole trader’ and discuss the main features of a sole trader
3.3 discuss the advantages and disadvantages of a sole trader
3.4 define the term ‘partnership’ and discuss the main features of a partnership
3.5 discuss the advantages and disadvantages of a partnership
3.6 define the term ‘company’
3.7 identify the different types of companies and provide examples of each
3.8 discuss the advantages and disadvantages of a company
3.9 define the term ‘trust’
3.10 discuss the advantages and disadvantages of a trust
3.11 compare and contrast financial statements for different business structures
3.12 explain the term ‘differential reporting’ and discuss the implications for disclosing entities.CHAPTER 3
Business structures
Contents
Chapter 3 preview
3.1 Forms of business entities
3.2 Definition and features of a sole trader
3.3 Advantages and disadvantages of a sole trader
3.4 Definition and features of a partnership
3.5 Advantages and disadvantages of a partnership
3.6 Definition and features of a company
3.7 Types of companies
3.8 Advantages and disadvantages of a company
3.9 Definition and features of a trust
3.10 Advantages and disadvantages of a trust
3.11 Comparison of business reports
3.12 Differential reporting