Types of Ownership

Question 1

Sole Traders

Answer 1

An individual owning the business on his/her own
Unlimited liability
Can employ people - but employees don’t share ownership

Question 2

Limited Liability

Answer 2

Company owned assets

Shareholders are protected and can only loose value on their investment

Question 3

PLC

Answer 3

A public limited company (‘PLC’) is a company that is able to offer its shares to the public. They don’t have to offer those shares to the public, but they can.

Question 4

Public Sectors

Answer 4

The part of the economy that is controlled by the state.

Question 5

Unlimited Liability

Answer 5

Owner is liable for debs of the business.

If the business fails and is left owing money, the bank and authorities and collect the money.

Question 6

Role of shareholders

Answer 6

The shareholders are the owners of the company and provide financial backing in return for potential dividends over the lifetime of the company.
The shareholders are the owners of the company and provide financial backing in return for potential dividends over the lifetime of the company.

Question 7

Dividends

Answer 7

Dividends are payments made to shareholders by the company from earned profits