Types Of Business

Question 1

Partnership

Answer 1

Two or more people own and run a business eg. Solicitors, dentists

Question 2

Charities/social enterprises

Answer 2

Businesses set up to help people. Not run for profit. Must only close due to lack of funding

Ways of funding includes, sponsorship, donations, charity shops, days etc

Question 3

Co-op

Answer 3

Business owned by its members

Question 4

Public corporations

Answer 4

A business which is government owned eg. NHS, emergency services

Often offer essential services
Affordable and accessible to everyone
Too expensive to run any other way

Question 5

Franchises

Answer 5

Paying a company for the right to trade under their name. Eg, McDonald’s

Question 6

Companies

Answer 6

A business which is separate to the original owners

Question 7

Ltd

Answer 7

Private limited company - selling shares to family and friends

Question 8

Plc

Answer 8

Public limited company - selling shares on the stock exchange

Very large and expensive - must have £50,000 share capital money upfront

Question 9

Advantages of becoming a company

Answer 9

Limited liability - can only loose what you invest
Opportunity to develop and expand
Shareholders become directors
Continuity - the company continues on long after owners have died etc

Question 10

Disadvantages of being a company

Answer 10

Loss of control because of many shareholders
Expensive to set up
Financial info is public
Must pay dividends to shareholders

Question 11

Soletrader

Answer 11

Owns and runs their own business