Legal structures

How many people are there in a micro business ?

• 0 - 2

• 10 - 20

• 0 - 5

• less than 25

What industry provide something that has been provided by nature?

• Primary

• Secondary

• Quaternary

• Quinary

What industry is teaching?

• Primary

• Secondary

• Quaternary

• Quinary

Which one below is quinary industry?

• Clothing

• Computers and phones

• Hospitality

• Finance

Which one below is NOT a characteristic of incorporated structure?

• is a legal entity separate from its members

• More expensive to run

• can enter a contract in its own right

• If the members change, the business has to change

Which statement below is correct?

• Sole trader business has limited liability

• Private companies has unlimited number of shareholders

• There is no restrictions on the transfer of shares or raising money from the public for public companies

• Public companies do not need to publish their annual reports to the public

What are the characteristics of an unincorporated business?

• Not separate from its members

• Sole trader is an example

• More expensive to establish

• Each person is personally liable for the debts and liabilities of the group

What are the advantages of sole trader business ?

• Low cost of entry

• Complete control of the business

• No tax on profit, only on personal income

• unlimited liability for business debts

What are the advantages of partnership?

• Low start-up costs

• no government regulation

• No taxes on business

• On death of one partner, business can keep going

What are the advantages of limited liability?

• easier to attract public finance

• can transfer ownership easily

• experienced management

• less government regulations