Q. Show types of activities performed by business organizations?
The forms of business unit examined in the previous section are classified according to the type of ownership of the business entity. Business entities are able to as well be grouped by the type of business activities they perform- merchandising companies, service companies and manufacturing companies. Any of these activities is able to be performed by companies using any of the three forms of business organizations.
When individuals look for a bank loan to finance the formation of a small corporation the bank frequently needs those individuals to sign documents making them personally responsible for repaying the loan if the corporation can't pay. In this illustration the individuals are able to lose their original investments plus the amount of the loan they are obligated to repay.