Business Ownership

Question 1

What are some features of sole traders ?

Answer 1

Smallest type of business
Owned by 1 person
Responsible for everything in the business
Keeps all profit
Unlimited liability

Question 2

What are some features of a partnership ?

Answer 2

Owned and run by 2+ people
Most are small
Unlimited liability

Question 3

What are some features of Public Limited Companies ?

Answer 3

Always ends in Plc
Share usually on stock exchange
Can be owned by public
Limited liability

Question 4

What are some features of Private Limited Companies ?

Answer 4

Always ends in Ltd
Each owner is a shareholder

Question 5

What are some features of charities ?

Answer 5

Do not exist to make a profit
Benefit groups in society
The reinvest their profits to improve their services

Question 6

What are some features of Social Enterprises ?

Answer 6

Formed with a social purpose
Example could be someone opening a self defence class

Question 7

What are some features of Franchises ?

Answer 7

Allowed people to buy into an already big establishment
Reduces the risk of starting up a new business
The person who buys a franchise is known as a franchisee
They pay a fee to the franchisor for the franchisor to give them their name, products and services

Question 8

What is unlimited liability ?

Answer 8

They are responsible for all debt if the business fails
They will have to sell personal possessions if the business fails

Question 9

What is limited liability ?

Answer 9

Personal possessions will be safe is business fails
Only responsible for the money invested into the business