1:3 Business Ownership

Question 1

Why do businesses start?

Answer 1

• Good ideas that will make money
• Hobby or interest
• Independence
• Like risk
• Employment
• Provide a service to the community

Question 2

How do businesses start?

Answer 2

• They produce a prototype
• Carry out market research
• Decide how they’ll advertise and decide where to sell
• Organise the finance and research their competitors
• Realise costs of production

Question 3

List the different sizes of businesses from micro-large.

Answer 3

Micro=1-9 staff=less than 1.7 million turnover
Small=10-49=less than 5.6 million
Medium=50-249=Less than 22.8 million
Large=more than 249=More than 22.8 million

Question 4

What are the different types of businesses?

Answer 4

Sole Trader
Partnership
Private Limited Company (Ltd)
Public Limited Company (Plc)
Franchise