Ownership and control

Question 1

Who is a sole trader?

Answer 1

A sole trader is the single owner of a business and makes all the
decisions. Sole traders are responsible if anything goes wrong.

Question 2

What is the aim of a sole trader?

Answer 2

The aim of a sole trader is to make profit and so they can make all the decisions and have the lifestyle they want.

Question 3

What is a partnership?

Answer 3

A partnership is an agreement between two or more people to own and take responsibility for a business.

Question 4

What is shared when in partnership?

Answer 4

■ The money needed to start up the business
■ Ownership
■ Liability for any debts
■ Profit
■ Decisions
■ The jobs that need doing
■ Knowledge and skills.

Question 5

What is a deed of partnership?

Answer 5

This is a legal document

Question 6

What does the deed of partnership include?

Answer 6

This is a legal
document that includes:
■ how much money each partner will put in to start the business
■ how profits and losses are to be shared
■ what each partner will have responsibility for
■ how the partnership will be ended.