ABSTRACT
This chapter describes the business activities and the industrial sector. The key to choosing a form of ownership is to understand how each firm's factors affect an entrepreneur's specific business and personal circumstances. Therefore, the legal form can be a sole trader, a partnership or a limited liability company. The implication of the legal form to a sole trader or partnership is unlimited personal liability and limited access to capital. The disadvantages to a sole trader can also include limited skills and abilities and a feeling of isolation. As a limited liability company, the liability of the directors and potential shareholders is limited to the amount of capital that each of them has invested in the company. This form of incorporation will make the company more attractive to banks and other investors. The downside to this is the need to comply with more regulations and greater disclosure of information.
