types of businesses

Question 1

unlimited liability

Answer 1

Sole trader

Question 2

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

Answer 2

Company

Question 3

Simpliest and cheapest business to set up, owner has control over all decisions, owner keeps all profit, fewer goverentment reporting requirements

Answer 3

sole trader

Question 4

Unlimited liability

Answer 4

Partnership

Question 5

Limited liability

Answer 5

Company

Question 6

Unlimited liability, profits must be shared, disputes between partners, ceases if a partner dies, leaves or retires = disadvantages

Answer 6

Partnership

Question 7

A business owned and operated by 1 person

Answer 7

Sole trader

Question 8

Limited liability, can raise lots of money through shareholders, unlimited life- change in shareholders doent cease business, run by board of directors not the shareholders

Answer 8

Company

Question 9

Simple and inexspensive to set up, Partners bring more money and skills, share losses

Answer 9

Partnership

Question 10

unlimited liability, owner suffers all loses, difficult to take holidays or leave = disadvantages

Answer 10

Sole trader

Question 11

expensive, complex reporting requirements

Answer 11

company

Question 13

A business owned and operated by 2 to 20 people

Answer 13

Partnership