1 - Business Ownership (2)

Question 1

What Are All The Forms Of Businesses?
(5 Points)

Answer 1

~ Sole traders.

~ LTDs and PLCs.

~ Public and private sector organisations.

~ Non-profit organisations.

~ Social enterprises.

Question 2

What Is Unlimited Liability?
(3 Points)

Answer 2

~ Applies to unincorporated business.

~ Owner and the business, is the same legal entity.

~ Owner is responsible, for all debts the business incurs.

Question 3

What Is Limited Liability?
(3 Points)

Answer 3

~ Applies to incorporated businesses.

~ Owner and the business, are separate legal entities.

~ Owners and shareholders, are not responsible for the debts a business incurs.

Question 4

What Are Sole Traders?
(2 Points)

Answer 4

~ Owned by one individual, who retains all the profits generated by the business.

~ Unincorporated, meaning it has unlimited liability.

Question 5

What Are The Benefits Of Being A Sole Trader?
(4 Points)

Answer 5

~ Cheap and easy to set up.

~ Owner, retains all profit made.

~ Autonomy in decision making.

~ Freedom.

Question 6

What Are The Drawbacks Of Being A Sole Trader?
(4 Points)

Answer 6

~ Unlimited liability.

~ Vulnerabile, due to illness.

~ Finance, is limited.

~ Limited expertise, in some areas.