Lesson 2 - Business Ownership Flashcards
Which company does have unlimited liability?
a) Partnership
b) Sole Trader
c) Private Company
d) both a and b
d) both A an B
How many owners does a Sole Trader have?
One
Which is NOT a characteristics of a Sole Trader?
a) Owners has unlimited liability for all business debts
b) Owner has to source all funding for the business
Owner retains all profits after personal income tax (not subject to company tax)
c) May have employees but owner is the only one responsible for making decisions for the business (therefore has to manage a wide variety of tasks)
d) Has to register business for tax
d) Has to register business for tax
Which is NOT a strength of a Sole Trader
a) Low cost of set up
Low level of government regulation (= easy to set up and run)
b) Centralised decision making = no conflict for owner
c) Has unlimited liability
d) Owner retains all profits (can decide to reinvest into business but has control)
c) Has unlimited liability
True or False ?
A sole trader may have difficulty sourcing finance to start/run their business.
True
True or False?
A sole trader has limited liability
False
unlimited liability
True or False?
A partnership is an unincorporated business structure owned by 2-50 owners
False
2-20
True or False?
In a Private Limited business, the business name MUST always followed by Pty Ltd. (Proprietary Limited)
True
True or False?
In a Private Limitied business, the business name MUST always be followed LTD.
False - Public has LTD
Which is NOT an example of a public company?
a) Mcdonalds
b) Qantas
c) Coles
d) Ziggy’s bakery
d) Ziggy’s bakery
True or False?
Public businesses are relatively inexpensive to set up and easy to run with minimal levels of public scrutiny and government compliance requirements.
False
The public company lists its shares for sale on the ASX or ABS?
ASX - Australia’s Stock Exchange
