S3 Types of Business

Unlimited liabilty means...

• that you only lose what you invest in the business if it fails

• that you are responsible for all business debts if the business fails, you could even lose personal possessions

A partnership can have how many partners?

• 2-22

• 2-30

• 2-28

• 2-20

What does a partnership agreement contain? (pick 3)

• Their roles

• Their responsibilities

• How profits/losses are to be shared

• Their qualifications

I want to open a dog walking company to earn some extra money. What kind of company should I start?

• Private limited company

• Sole trader

• Partnership

• Franchise

What feature do a sole trader and a partnership share?

• Unlimited liabilty

• Share the profits

• Shared responsibilty

• Heavy workload

Who owns and controls a private limited company?

• The shareholders

• The managers

• The employees

You have to be invited to buy shares in a private limited company

• True

• False

Which company started as a sole trader?

• 
• 
• 
• 

Which company started as a partnership?

• 
• 
• 
• 

The Franchisee pays the franchiser a % of sales or a set royalty each year for use of the business name and products/services.

• True

• False