Types Of Business Organisations

Question 1

What is a sole trader?

Answer 1

A person who owns and controls. his/ her own business.

Question 2

Give 5 examples of a sole trader.

Answer 2

Hairdresser.
Retailers.
Farmers.
Carpenters.
Plumbers.

Question 3

What are the legalities of a sole trader?

Answer 3

Business Names Act 1963.
Health and Safety.
Self- employed taxation system.
Register for VAT.

Question 4

What are the advantages of being a sole trader?

Answer 4

They are their own boss and keeps profits- this acts as a motivational tool.
They make their own decisions- they have full control of their business.
They are easy to establish- there are no legal complications.

Question 5

What are the disadvantages of being a sole trader?

Answer 5

They have unlimited liability- the person may lose private wealth.
They suffer all loses- bare the risks solely.
Needs skills in several areas- the person must be multi- talented.
Long hours- needs to always be available.

Question 6

What is a partnership?

Answer 6

The relationship that exists between people carrying on a business with a view to making a profit.

Question 7

What are examples of partnerships?

Answer 7

Accountants.

Solicitors.

Question 8

What are the legalities of a partnership?

Answer 8

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Question 9

What are the opportunities of a partnership?

Answer 9

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Question 10

What are the challenges of a partnership?

Answer 10

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