business ownerships

Question 1

Sole Trader

Answer 1

• only owner of the business, so can make own decisions with other questioning it.
• no paperwork to fill in
• very easy to set up
• unlimited liability (if the business goes into liquidity the owner may loose their processions to pay off the debt)

Question 2

Franchise

Answer 2

• get a lot of help from the main company
• easy to set up as all the equipment is there for you.
• advice and guidance is given
  -owners keep most of the profit
  success very dependent on the popularity of the product

Question 3

PLC

Answer 3

• offers shares the public, resulting in them to gain higher capital
• must make 50,000-65,000 a year

Question 4

partnerships

Answer 4

two or more people own the business

• have to fill in alto of forms
• has to share profits as dividends to their shareholders
• greater range o skills/expertise

Question 5

co-operatives

Answer 5

• sells shares

- raises a lot of capital