Business Ownerships

Question 1

List the 8 business ownerships

Answer 1

1. Sole Trader
2. Partnership
3. Public Limited Company
4. Private limited Company
5. Limited Liability Partnership
6. Franchise
7. Concession
8. Freelance

Question 2

Describe a sole trader

Answer 2

1 person in company (own boss)
Gain all profits made
Work the hours they want, and pay they want
If sick or on holiday no money is made
Full responsibilities of business

Question 3

Describe a partnership

Answer 3

2 people in the company
Share the profits
Share the responsibilities
If someone is sick or on holiday you will still get paid
More skills
May not agree with your partners choices

Question 4

Describe Public Limited Company

Answer 4

Normally a larger business (M&S).
Shares can be offered to anyone.
More Capital.
Better for expansion and investment opportunities.

Question 5

Describe Private Limited Company

Answer 5

Normally a smaller business (family run).
Shares are not offered to anyone and everyone with in the business has to agree to who has shares.
Do NOT lose initial investment if business goes bust.

Question 6

Describe Limited Liability Partnership

Answer 6

An LLP are responsible for the debts of the business and not the partners.
Not responsible for other peoples actions within the business.
No share capital in this type of business

Question 7

Describe Franchise

Answer 7

A well known business owned by a Franchisor, has all rights to business.
Allows Franchisee to run a business using their company name.
The Franchisee must have the business exactly how the Franchisor wants it (colours, decor, what it is selling, logo).
Business name is already well known so will get business quickly and easily.

Question 8

Describe Concession

Answer 8

A small business within a larger business
Passing trade (good for business)
Have to be open the same hours as larger business

Question 9

Describe Freelance

Answer 9

Can have multi jobs on at the same time for different people

Flexible hours