1 Different abilities and qualificationsWorkers do not all have the same education , training and ability . For example , an accountant is a more skilled worker than a cashier . If both workers were paid the same amount ,…
Labor productivity in an organization can be calculated by dividing total output in a given period of time ( for example , each day , week or month ) by the number of workers employed .Average product of labor =…
Joint ventures occur when two businesses agree to work closely together on a particular project and create a separate business division to do so . This is not the same as a merger ; but it can lead to mergers…
A franchise is not strictly a form of legal structure for a business but it is a legal contract between two firms . This contract allows one of them , the franchisee , to use the name , logo and…
A company is a type of business structure that is a separate legal entity from its owners. It’s a complex business structure, with higher set-up and administrative costs because of extra reporting requirements and higher-level legal obligations. MERITS: Shareholders have limited…
A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. MERITS: Easy to set up. Owner has complete control – not answerable to anybody else. No legal formalities. Owner keeps…
