Edexcel-Forms of business 1.5

Question 1

sole trader

Answer 1

A business that has a single owner

Question 2

Sole trader Advantages

Answer 2

Easy
Inexpensive
Owner has complete control

Question 3

Sole trader disadvantages

Answer 3

Unlimited liability
Limited access to finance

Question 4

partnership

Answer 4

Two or more people join together to form a business

Question 5

partnership advantages

Answer 5

Shared responsibility
More skills and knowledge
Increased access to finance

Question 6

Partnership disadvantages

Answer 6

Unlimited liability
profits shared equally

Question 7

Private limited company

Answer 7

ownership broken down into shares which can be sold specifically to family and friends

Question 8

Private limited company advantages

Answer 8

Limited liability
Access to greater finance
professional image and reputation

Question 9

private limited company disadvantages

Answer 9

More expensive
Time consuming
Annual reports have to be published

Question 10

Franchising

Answer 10

individual buys rights to operate a business model from larger company

Question 11

Social enterprises

Answer 11

Primary purpose to create social or environmental impact

Question 12

Online businesses

Answer 12

Lower overhead costs and can operate anywhere.

Question 13

Public limited company advantages

Answer 13

Access to capital
Greater public profile

Question 14

Public limited company disadvantages

Answer 14

Increased liquidity
Extended decision making

Question 15

Public limited company

Answer 15

Offer shares to the public and are typically listed on stock exchange

Question 16

Forms of business

Answer 16

refers to the various types of entities through which entrepreneurial activities can be carried out.

Question 17

Limited liability

Answer 17

personal assets are protected.

Question 18

Unlimited liability

Answer 18

personal assets are vunerable.