The different types of businesses

Question 1

What are the different types of business?

Answer 1

• Sole Trader
• Partnership
• Limited companies
• ## charities

Question 2

What are sole traders and what are they liable for

Answer 2

individually ran
that individual is liable for all business debts
Individual will receive all profits

Question 3

What are partnerships and what are they liable for

Answer 3

• owned by at least 2 - 20 people
• usually formed when people lack funds
• workload and responsibility
• wider range of skills
• partners have to agree on all decisions

Question 4

What are private limited company and what are they liable for

Answer 4

• you get invited to buy shares into the business
• limited to the amount of shareholders

Question 5

What are public limited company and what are they liable for

Answer 5

-anyone can buy into the business
- will have limited liabilites this means they cannot be resonsible for any business losses

Question 6

What are charity company and what are they liable for

Answer 6

not for profit organisation - their main aims and objectives its not all about raising profit for filling a certain need.

Question 7

What is a franchise

Answer 7

this is where an already established company (KFC) is owned by a franchisor but managed by a franchisee.

Question 8

What is a freelancer

Answer 8

These individuals have the skills, knowledge and experience in a particular field to charge organisations for their services. The most common jobs for freelancing or consultancy include performing arts roles such as actor, dancer and musician.