Business Ownership

Question 1

Sole trader

Answer 1

A form of business that is run by one person

Question 2

Partnership

Answer 2

When a business is owned or managed by two or more people

Question 3

Private limited company (ltd)

Answer 3

A company that can’t publicly advertise shares on the stock market and can restrict who it’s shares are sold to. Enjoys limited liability.

Question 4

Public limited company (plc)

Answer 4

Can publicly advertise it’s shares, needs a share capital of £50,000, and cannot restrict who shares are sold to. Enjoys limited liability. Subject to takeover.

Question 5

Not-for-profit organisation

Answer 5

An organisation set up to achieve goals other than profit

Question 6

Limited liability

Answer 6

If a business fails, the owner can only lose the money they’ve invested into their business.

Question 7

Unlimited liability

Answer 7

When the business owner can lose their own money and assets after their business fails.

Question 8

Private sector organisations

Answer 8

Organisations owned by individuals

Question 9

Public sector organisations

Answer 9

Organisations that are owned by the government