Ch. 9 Quiz

Sole Proprietorship

• The simplest type of business structure. You trade on your own and control and manage the business.

• Two or more owners

• Limited Liability

• Easy to set up , owner keeps the profit, accounts are kept private, own boss

Partnership

• unlimited liability, lack of continuity, lack of money, limited management skills, long working hours

• A group of people (2+) who carry on a business as partners and jointly receive income.

• A public company is a complex legal structure. It is a distinct legal entity and you can trade shares on the Stock Exchange

• The simplest type of business structure. You trade on your own and control and manage the business.

Shareholder

• A company that is privately owned, issues stock and has shareholders. The shares are not traded on the stock exchange.

• Unlimited liability

• A person who owns shares in a company and therefore gets part of the company's profits

• Easy to set up , owner keeps the profit, accounts are kept private, own boss

Limited liability

• A public company is a complex legal structure. It is a distinct legal entity and you can trade shares on the Stock Exchange

• Two or more owners

• unlimited liability, lack of continuity, lack of money, limited management skills, long working hours

• Financial responsibility of business owners only for what they invested in a business

Unlimited liability

• The owner is personally and fully responsible for all losses and debts of the business

• A person who owns shares in a company and therefore gets part of the company's profits

• More complicated to set up - legal formalities​

• A company that is privately owned, issues stock and has shareholders. The shares are not traded on the stock exchange

Partnership agreement

• A person who owns shares in a company and therefore gets part of the company's profits

• An agreement that clearly states what each partner of a business has agreed to It will also state name and function of the business; what each partner has invested & profit sharing ratio

• A company that is privately owned, issues stock and has shareholders. The shares are not traded on the stock exchange

• Limited liability because of the contract

Easy to set up , owner keeps the profit, accounts are kept private, own boss

• Advantage of a sole proprietorship

• Advantage of a corporation

• Disadvantage of a proprietorship

• Disadvantage of a corporation

Unlimited liability, lack of continuity, lack of money, limited management skills, long working hours

• Advantage of a sole proprietorship

• Advantage of a corporation

• Disadvantage of a sole proprietorship

• Disadvantage of a corporation

Advantage(s) of Partnership

• Limited liability

• Two or more owners to make decisions

• Unlimited liability, lack of continuity, lack of money, limited management skills, long working hours

• Easy to set up , owner keeps the profit, accounts are kept private, your own boss

Disadvantage(s) of Partnership

• More complicated to set up - legal formalities​

• Must travel to the other headquarter buildings worldwide

• The customer service representatives under you can be really annoying

• Unlimited liability