types of businesses

Question 1

-operated by one person

Answer 1

sole trader

Question 2

-at least 5 members
-limited liability
-equal voting
-little to no profit

Answer 2

cooperative

Question 3

-shareholders
-limited liability
-can raise lots of money through shareholders
-expensive to set up

Answer 3

company

Question 4

-2 to 20 partners
-unlimited liability
-simple and inexpensive to set up
-profits must be shared

Answer 4

partnership

Question 5

-a person buys the right to use the name and products
-depends if it is set up by a sole trader, company or a partnership
-provides training

Answer 5

franchise

Question 6

limited liability
expensive to set up

Answer 6

company

Question 7

limited liability
equal voting

Answer 7

cooperative

Question 8

unlimited liability
simplest to set up

Answer 8

sole trader

Question 9

depends if set up as sole owner, company or partnership

Answer 9

franchise

Question 10

keeps all profit

Answer 10

sole trader

Question 11

share of losses
inexpensive to set up

Answer 11

partnership

Question 12

run by board of directors

Answer 12

company

Question 13

advertising and market support

Answer 13

franchise

Question 14

no minimum age limit of members
inexpensive to register

Answer 14

cooperative

Question 15

owner suffers all losses

Answer 15

sole trader

Question 16

difficult to take holidays

Answer 16

sole trader

Question 17

profits must be shared
ceases if partner dies or leaves or retires

Answer 17

partnership

Question 18

expensive to set up
complex reporting requirements

Answer 18

company

Question 19

paying ongoing fees
profits must be shared

Answer 19

franchise