IGCSE Business Studies - 1.4 Types of Business Organisation Flashcard

Front

What is a sole trader?

Back

An unincorporated business owned and managed by one person

Front

What is one major advantage of a sole trader?

Back

Complete control over business decisions

Front

What is a disadvantage of being a sole trader?

Back

Unlimited liability

Front

Which of the following best describes a partnership?

Back

An unincorporated business owned by two or more individuals who share profits

Front

In a partnership, how are profits usually shared?

Back

Equally, unless agreed otherwise

Front

What is a primary advantage of a partnership?

Back

Increased availability of capital and expertise

Front

What does 'unlimited liability' mean?

Back

Owners are personally liable for all business debts

Front

What type of liability do sole traders and partnerships have?

Back

Unlimited liability

Front

What is a private limited company (Ltd)?

Back

A company owned by a small group of shareholders with limited liability

Front

In a private limited company, who can buy shares?

Back

Only people approved by current shareholders