Forms of Business

Question 1

what is meant by public sector?`

Answer 1

companies owned by the government to provide a free service ie. the NHS

Question 2

what is meant by private sector?

Answer 2

companies owned by private individuals that aim to make a profit

Question 3

what is a sole trader?

Answer 3

someone who works for themselves but also employs people to help occasionally

Question 4

what is the main benefit of being a sole trader?

Answer 4

you have full control over the business

Question 5

what does unlimited liability mean?

Answer 5

the owner of the business is fully responsible for the financial control of the business, this also make them responsible for the debts which they have to pay out of their own pockets

Question 6

what is a partnership?

Answer 6

a group of individuals that work together ie. doctors

Question 7

what is a private limited company (ltd)?

Answer 7

owned by shareholders that can put restrictions on who shares are sold to in the future

Question 8

what is a public limited company (plc)?

Answer 8

owned by shareholders who cannot put restrictions on who teh shares of the business are sold to in the future

Question 9

what is a not for profit organisation?

Answer 9

a company taht does not have “to make a profit” as one of its main objectives

Question 10

what is a lifestyle business?

Answer 10

a company that is geared towards supporting an owners income and personal requirements