Business Ownership Flashcards
1
Q
What is Limited Liability
A
The Business owners are only responsible for business debts, the owner is legally separate from the business
2
Q
What is unlimited liability
A
The business owner/owners are personally responsible for all debts no matter the cost
3
Q
What is a Sole Trader
A
A business owned by one person, and includes unlimited liability
4
Q
What is a Partnership
A
A business owner by two or more people, and can include limited or unlimited liability
5
Q
What is a Franchise
A
A business when the owner of an idea ( franchisor ) grants a licence to another business ( franchisor ) to sell or produce
6
Q
What is a Franchisor
A
The owner of the business idea
7
Q
What is a Franchisee
A
The business that buys the idea from the Franchisor
