understanding diffrent business forms

Question 1

what is a sole trader?

Answer 1

a person who operates and owns a business on there own they have unlimited liability

Question 2

what is unlimited liability?

Answer 2

the owner is fully responsible for the business so if it fails and they owe money it might come out of the owners personal assets

Question 3

what is an advantage of being a sole trader ?

Answer 3

have ultimate control over descion making
keep all profits
faster descion making

Question 4

what is a disadvantage of being a sole trader?

Answer 4

unlimited liability
might lack some knowledge
long hours
demanding
limited sources of finance

Question 5

what are dividends?

Answer 5

a percentage of the compaines profits paid to its shareholders the amount is based on the companies profits and how many shares of the business they own

Question 6

what is a takeover?

Answer 6

tis happens when a company buy more than 50% of another share capital