business organisations Archives - Free ZIMSEC & Cambridge Revision Notes

Private Limited Companies

By garikaib|2022-09-15T12:42:18+02:00January 24th, 2023|O Level Commerce Notes, Ordinary Level Notes, Principles of Accounts Notes|

Dell Private Limited. Image credit freshhotjobs.com ZIMSEC O Level Commerce Notes: Business Organisations: Private Limited Companies

Its operations are governed by the Companies Act.
Formed by 2-50 shareholders.
In other countries a company is formed by 2 or more people with no maximum number of shareholders.
Has a […]

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Trade Association

By garikaib|2022-09-15T12:42:08+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

ACCA Offices. Image credit applepieghana.com ZIMSEC O Level Commerce Notes: Trade Associations

Is:

an organisation formed by traders in the same line of business/industry e.g. Association of Certified Chartered Accountants (ACCA), Bankers Association of Zimbabwe etc.
Is found in the private sector.
Protects the interests of its member […]

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Advantages and Disadvantages of Private Limited Companies

By garikaib|2022-09-15T12:42:19+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Dell Private Limited. Image credit freshhotjobs.com ZIMSEC O Level Commerce Notes: Business Organisations: Advantages and Disadvantages of Private Limited Companies

Advantages

Operate as separate legal entities meaning:
they can sue and be sued in their own name.
Can make contracts in their own name.
Shareholders enjoy limited liability.
Can raise more […]

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Public corporations/ Parastatals

By garikaib|2022-09-15T12:42:07+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

A ZUPCO bus. Image credit bulawayo24.com A ZUPCO bus. Image credit bulawayo24.com ZIMSEC O Level Commerce Notes: Public Corporations/Parastatals and Public Utilities

Features

Established by an act of parliament.
Provides essential goods and services e.g. transport (NRZ)
The main aim is to provide essential services at affordable prices.
Have no profit motive.
Are separate legal […]

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Advantages and Disadvantages of Public Limited Companies

By garikaib|2022-09-15T12:42:16+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Econet is an example of a PLC ZIMSEC O Level Commerce Notes: Business Organisations: Advantages and Disadvantages of Public Limited Companies

Advantages

They are separate legal entities.
Shareholders have limited liability.
Shares can be freely transferred on the stock exchange.
Membership is open to the public since shares are […]

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Advantages and disadvantages of Public corporations/ Parastatals

By garikaib|2022-09-15T12:42:07+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Megawatt building. Image credit newsday.co.zw ZIMSEC O Level Commerce Notes: Advantages and disadvantages of Public corporations/ Parastatals

Advantages

The government controls the provision of strategic products.
Provides products at cheap prices.
Provides employment to people.
Reduces duplication of resources .
Enjoy limited liability.
Implement government policies i.e. in terms of setting the […]

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Public Limited Companies

By garikaib|2022-09-15T12:42:17+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes, Principles of Accounts Notes|

Econet is an example of a PLC ZIMSEC O Level Commerce Notes: Business Organisations: Public Limited Companies

Formation

Membership is open to the public.
Membership is by invitation through a prospectus.
Formed by at least two shareholders and there is no upper limit.
Governed by the Companies Act.
The founding […]

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Local Authorities

By garikaib|2022-09-15T12:42:06+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Harare city council. Image credit financialgazette.co.zw ZIMSEC O Level Commerce Notes: Local Authorities

Local authorities

Can be a city ( e.g. Harare City Council), rural ( e.g. Mutasa District Council) or district council.
Are controlled by the central government.
Owned by the local government.
Set up to administer a […]

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Multinational Companies

By garikaib|2022-09-15T12:42:15+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Delta is a local example of an MNC. Image credit Nehandaradio.com ZIMSEC O Level Commerce Notes: Business Organisations: Multinational Companies

Features

Also known as Trans-national companies.
They are found in the private sector.
They are large limited liability businesses which have:
subsidiaries operating in other […]

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Reasons why Parastatals are turned into Public Limited companies (privatised)

By garikaib|2022-09-15T12:42:06+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Dairibord Milk. Image credit herald.co.zw ZIMSEC O Level Commerce Notes: Reasons why Parastatals are turned into Public Limited companies (privatised)

Reasons why parastatals are converted into public limited companies.

To reduce the burden on the taxpayer for example parastatals are often subsidised using tax-payer’s money.
To improve efficiency of […]

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January 2023