IGCSE Business 3 ELS

Which of the following professions could be run as a sole trader?

• Plumber, electrician, mobile hairdresser, ice cream van business

• Solicitor, accountant and doctor

Which of the following professions could be run as a partnership?

• Plumber, electrician, mobile hairdresser, ice cream van business

• Solicitor, accountant and doctor

Which of the following professions could be run as a partnership?

• Plumber, electrician, mobile hairdresser, ice cream van business

• Solicitor, accountant and doctor

Explain an advantage of being a partnership

• As there is more than one owner it is easier to raise capital (money) to start or expand the business

• Easiest and cheapest form of business ownership to set up

Explain a disadvantage of being a partnership

• Decision making is slower as more people own the business

• They can often work long hours and struggle to take holidays and time off when ill, because of the effort required to establish a business.

The term for money invested in a business is

• finance
• capital
• investment
• shares

Profit is

• the money that the business makes from selling its products
• the money that the business receives from the bank
• the money that the owners use to start up the business
• the money the business makes once all costs are paid

A sole trader has responsibility for

• preparing the accounts of the business
• all aspects of their business
• selling the products
• completing spreadsheets

An objective of a sole trader is

• to sell more shares on the stock market
• to increase the dividend given to investors
• to survive in tough economic times
• to maximise the amount of loans they can receive

An advantage of being a sole trader is

• you can take time off whenever you want
• you can grow your business really easily
• you can receive large amounts of finance from loans
• you receive all the firm's profit for yourself