Business Types

Question 1

What is a Sole trader

Answer 1

Is a business which is owned by one person with unlimited liability

Question 2

Advantages of sole trader

Answer 2

• you are your own boss
• control over business
• all profits go to you

Question 3

Disadvantages of sole trader

Answer 3

• unlimited liability
• lot of responsibility
• all your fincae

Question 4

What is partnership

Answer 4

A business owned by 1 or more people

They can have a legal partnership

Question 5

Advantages of partnership

Answer 5

• easier to raise finance
• shared skills and experience
• share work load

Question 6

Disadvantages of partnership

Answer 6

• tension

* profits shared

Question 7

Limited liability partnership

Answer 7

A parnerhsip with limited liabity

Question 8

Advantages of limited liability

Answer 8

Limited liability
Easier to raise finance
Stable

Question 9

Disadvantages of limited liability partnership

Answer 9

Greater cost

Question 10

Franchise

Answer 10

Business selling business identity

Question 11

Advantages for the franchiser

Answer 11

Able to expand

Chose sutibul applicants

Question 12

Disadvantages for the franchiser

Answer 12

Control issues
Conflict
Costs

Question 13

Advantages for the franchiser

Answer 13

Lower risks
Support advice and training
Marketing
Financially stable

Question 14

Disadvantages to thr franchisee

Answer 14

Profits shared
Franchisee fees
Less control

Question 15

Cooperatives

Answer 15

Business owned by members profit is shared between members

Question 16

Advantages of cooperatives

Answer 16

Easy to set up
Liability for members
Higher quality of service
Coustomers more loyal,

Question 17

Disadvantages of cooperatives

Answer 17

Limited capital
Weak management
Slower decision making