Business Ownership

Question 1

Ownership comparisons

Answer 1

ST: 1 person
PLC: 2-50 shareholders
C-O: eVery member
SO: the government

Question 2

Formation comparisons

Answer 2

ST: easy, no documents necessary
PLC: documents necessary
CO: “”
SO: “”

Question 3

Liability comparison

Answer 3

ST: unlimited to all of the owner’s belongings
PLC: limited to amount of money invested

Question 4

Control comparison

Answer 4

ST: owner has full control
PLC: shareholders vote In proportion to their shares
CO: members vote to control
SO: government has full control

Question 5

Finance comparison

Answer 5

ST: finance it all alone :(
PLC: shareholders finance it
CO: members raise money
SO: finance from taxes

Question 6

Profits

Answer 6

ST: all profits go to owner
PLC: profits shared in proportion to shares
CO: profits shared by members
SO: government uses all profits

Question 7

Disadvantages of being a sole trader

Answer 7

• long hours
• no one to discuss problems with
• can be difficult to raise finance
• unlimited liability
• business ends when owner dies

Question 8

Advantages of being a sole trader

Answer 8

• total control
• cheap and easy to set up
• Get to keep all profit
• personal contact with customers

Question 9

Unlimited liability

Answer 9

The owner is responsible for all the debts/losses Incured by the Éire personal belongings can taken as collateral

Question 10

Four types

Answer 10

• sole trader
• private limited companies
• co-operative
• state ownership