which of the following business organisations is likely to experience disagreements between management and shareholders

Analyze the question: The question asks which type of business is most likely to have conflict between management and shareholders. This points to a business where the owners (shareholders) are separate from the people who run it (managers).

Explain the concept: This is called the separation of ownership and control. When owners are different from managers, their interests can clash. Shareholders want high dividends and a rising share price, while managers may want higher salaries, bigger budgets, expansion, or retained profits. This is known as the "principal-agent problem."

Step-by-step evaluation of the options:

• A. Co-operative society: Members own and run the society, usually with one member, one vote. They work for mutual benefit, and they are called members, not shareholders in the usual sense. Disagreements are less likely.
• B. Sole trader: One person owns, manages, and controls the business. There are no shareholders, so no such disagreement is possible.
• C. Partnership: Partners usually own and manage the business together. They may disagree with one another, but this is not a conflict between management and shareholders.
• D. Joint-stock company: Ownership is spread among many shareholders, while a board of directors and professional managers run the company. Their different interests make disagreements most likely here.

Answer: The correct option is D. Joint-stock company.

Tip: Whenever you see the words "shareholders" and "management" together, think of a joint-stock company (a limited liability company). The keyword is separation of ownership from control. Sole traders and partnerships usually combine ownership and management.