1.1 Examine the impact of Legal Status on the governance of an organisation In order to clearly demonstrate an understanding of the principles of management and leadership within an organisational context an over-view of the differing components is required including understanding the factors which impact on an organisation's internal environment. Corporate Governance refers to the way that companies are governed and to what purpose, identifying who within the business makes decisions, holds power and takes accountability, this governance ensures that all businesses have the correct decision making processes and controls in place so that the interests of all stakeholders are balanced (ISCA,2020). There are 4 main types of legal status that can be attributed to a business: Sole trader, Limited Company, Partnership and a Limited liability partnership each have varying governance structures