types of business organisations

Question 1

what is a sole trader

Answer 1

a sole trader is a person who starts to work for themselves so all the profit is for themselves but they have unlimited liability

Question 2

what is a partnership

Answer 2

a partnership is when two to twenty people decide to work together so they have to split the profit but they also get to split the work load and they still have unlimited liability

Question 3

what is a privet limited company

Answer 3

a privet limited company is a business which is owned by shareholders and they have limited liability

Question 4

what is a non profit organisation

Answer 4

this is a organisation where the main aim is not to make profit but to do one of these four things relief poverty
advance education advance religion carry out activities beneficial to the community

Question 5

what is a social enterprise

Answer 5

a social enterprise is a business that is set up and run specifically for social or environmental purposes

Question 6

what is local government

Answer 6

local government provide a wide verity of services including education street lighting and social services

Question 7

what is unlimited liability

Answer 7

unlimited liability is where if the company gets in dept or collapses then the money needed to get it out of dept
will be taken from personal positions and they will take everything till the cost is covered

Question 8

what is limited liability

Answer 8

limited liability is where if he company gets in dept then the shareholders will lose out on there original investment but the owner wont lose any personal positions