Assement 1.4

Question 1

What is a sole trader?

Answer 1

A sole trader is a person who sets up and owns their own business

Question 2

What is a partnership?

Answer 2

A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates.

Question 3

What is a ltd’s and franchise?

Answer 3

A franchise business is a business owned by an entrepreneur or an entrepreneurial group, offering a product or service labeled by a corporation that provides assistance in every aspect of the business, in return for a combination of a flat fee, plus fees based on profits or sales.

Question 4

Advantages for sole traders?

Answer 4

• they get all the profits that are made

- they choose how the business is made

Question 5

Disadvantages of a sole trader?

Answer 5

• has all the responsibility
• unlimited liability
• limited money sources

Question 6

Advantages of a partnership?

Answer 6

• less risk
• more money sources
• more ideas

Question 7

Disadvantages of a partnership?

Answer 7

• less profit is made for you
• have to agree on something to go ahead with it
• less control on the business

Question 8

Advantages for a franchise?

Answer 8

• you don’t have to advertise

- well known

Question 9

Disadvantages of a franchise?

Answer 9

• you don’t gain all the profit
• you can’t sell what you want
• have to sell everything at there prices

Question 10

Factors of location?

Answer 10

• temperature
• customer needs
• customer wealth