| A | B |
|---|
| A sole trader | Unlimited liability |
| Partnership | Shares the liability |
| Limited company | Shares sold to those invited |
| plc | Shares sold on the stock market |
| Span of control | The number of people a manager looks after |
| Advantage of a small span of control | A manager gets to know his staff |
| Hierarchical structure | Several layers of authority in an organisation |
| Flat structure | Few layers of authority in an organisation |
| Matrix structure | People taken from different depts to run a project |
| Advantage of a flat structure | Fewer communication lines |
| Advantage of a hierarchical structure | Smaller span of control |
| Disadvantage of a flat structure | Large span of control |
| Disadvantage of a hierarchical structure | Communication can be poor upwards and downwards |
| Disadvantage of a matrix structure | Team may not get on |
