1- making the business effective

Question 1

define sole trader

Answer 1

individuals who own their own incorporated business

Question 2

define partnership

Answer 2

association of individuals owned by 2 or more people

Question 3

define private limited company

Answer 3

owned by shareholders, run by directors, have limited liability

Question 4

franchise

Answer 4

the legal right to use the name and logo of an existing business

Question 5

limited liability

Answer 5

the owners and the business are separate legal entities, debts belong to the business, the owners can only lose money up to the amount they invested, their personal belonging are not affected

Question 6

unlimited liability

Answer 6

the owner has 100% control of decisions and gets 100% of the profits, the owner is legally responsible for any debts of the business, owner may lose personal belongings to pay of debt,

Question 7

franchisor

Answer 7

the business that gives franchisees the right to sell its product or service

Question 8

franchisee

Answer 8

a business that agrees to manufacture, distribute or provide a branded product under licence from a franchisor