BTEC Business Unit 1 Exploring Business

Which of the following is not a disadvantage of a partnership?

• Unlimited liability- the owners are personally responsible for any business debt.

• Profits are shared between partners.

• Partners may disagree on business decisions or how it's run.

• Knowledge and capital is more readily available with a more partners.

How is a private limited company different from a sole trader?

• Private limited companies are owned by only one person.

• Private limited companies can have many private owners who buy shares in the business.

• Sole traders require a legal charter for the business

• Sole traders are global businesses.

How is a limited company different from a sole trader or partnership?

• Limited companies has only one or two owners.

• Limited companies is usually owned by one person.

• Limited companies requires a legal charter to start.

• The owners of the limited company control the business.

How are partnerships and a sole trader alike?

• Can sell stock to raise money

• Easy to start the business

• Needs 2 or more owners

• Require a contract to start

Goodwill Industries helps poor and homeless people with the money raised by selling donated products in their stores. Goodwill is classified as what kind of business? 

• Non-profit
• For-profit

Norman and Jones Pet Sitting business is the best pet sitting business in Bexley. How is Norman and Jones Pet Sitting business classified?

• Secondary business

• Quaternary business

• Primary business

• Tertiary business

Entrepreneurs enter business because they desire to make money. The term that best describes this is:

• Greed
• Pricing motive
• Profit motive
• Service

Microsoft is a very familiar business and is known as a:

• Limited Company

• Franchise

• Sole Proprietorship

• Partnership

Subway is a very familiar business known as a:

• Limited Liability

• Franchise

• Sole proprietorship

• Partnership

What does limited liability mean for business owners?

• They are personally responsible for covering the business's losses

• The owners can only sell certain goods

• They are responsible only for some or none of the business's losses

• They specialise in providing liability insurance