Types of Buisnesses

Question 1

UNLIMITED LIABILITY-The owner is personally responsible for buisness debts. their personalassets may need to be sold to meet outstanding buisness debts

Answer 1

sole trader liability of owner

Question 2

-simplest and cheapest to establish
-owner has controll over all decisions
-owner keeps all profit
-fewer government reporting requirements

Answer 2

sole trader advantages

Question 3

-unlimited liability
-owner suffers all losses
-dificult to take holidays or leave

Answer 3

sole trader disadvantages

Question 4

-simple and inexpensive to set up
-partners bring more money and skills
-share of losses

Answer 4

partnership advantages

Question 5

-unlimited liability of owner
-profits must be shared
-disputes between partnerships
-ceases if a partner leaves, or retires

Answer 5

partnership disadvantages

Question 6

-establish reputation, products or service and store layout
-advertising and market support
-franchiser provides training

Answer 6

franchise advantages

Question 7

UNLIMITED LIABILITY-the partners are joined responsible for buisness debts. their personal assets may need to be sold to meet outstanding buisness debts.

Answer 7

liability of owner partnership

Question 8

a buisness which has a seperate legal entity from its shareholders. A public company has a minimum of 1 shareholder. A propriety (private) company has 1-50.

Answer 8

company description

Question 9

a buisness owned and operated by 2-20 partners

Answer 9

partnership description

Question 10

-limited liability
-can raise lots of money through shareholders
-unlimited life change in shareholders doesnt cease buisness
-run by a board of directors not the shareholders

Answer 10

advantages company

Question 11

-franciser controls decisions made and operations
-paying ongoing fees to the franchiser
-profit must be shared with the franchiser

Answer 11

franchise disadvantages

Question 12

a buisness or person (franchise) buys the right to use the name, product and services of an existing buisness (frachiser).

Answer 12

franchise description

Question 13

A Buisness owned and operated by one person

Answer 13

sole trader description

Question 14

Limited liability- shareholders are limited to the value of their shares for any buisness debts. No personal assets can be sold

Answer 14

liability of owners company

Question 15

-minimum of 5 shareholders
-little or no profit distributed to members
-only one vote each member on going
-education for members

Answer 15

disadvantages cooperative

Question 16

-expensive to set up and operate
-complex reporting requirments

Answer 16

company disadvanteges

Question 17

A buisness whitch has at least 5 members with shared management and equal voting rights. It is a seperate legal entity

Answer 17

cooperative description

Question 18

depends on if the franchise is set up as a sole trader, partnership or company

Answer 18

franchise liability of owner

Question 19

limited liability memeber s are limited to the value of their investments for buisness debt

Answer 19

liability of owner corperate

Question 20

-inexpected to register
-equal voting rights
-limited liability
-no mimimum age limit of members

Answer 20

advantages of cooperative