The 4th Business Topic

Question 1

Limited liability

Answer 1

The level of risk is limited to the amount of money that has been invested in the business or promised as investment

Question 2

Unlimited liability

Answer 2

The level of risk goes beyond the amount invested, so the personal assets of the business owner can be used to pay off the business’s debts

Question 3

Sole trader

Answer 3

A type of unincorporated business that is owned by just one person

Question 4

Partnership

Answer 4

A business that is owned by a group of two or more people who share the financial risk, the decision making and the profits

Question 5

Private limited company (plc)

Answer 5

An incorporated business that is owned by shareholders

Question 6

Franchise operation

Answer 6

When one business gives another business permission to trade using its name and products in return for a fee and share of its profits

Question 7

E-commerce

Answer 7

Using the internet to carry out business transactions

Question 8

Proximity

Answer 8

Nearness in space, time or relationship

Question 9

Convenience good

Answer 9

A product that a customer buys frequently or routinely