OCR GCSE Business (1-9) Business Ownership

A sole proprietor has to share the profits made by the business. True or False?

• True

• False

Select TWO true statements that relate to a sole trader. (Select two answers)

• Sole traders have limited liability

• Sole traders get to make all their own decisions about the business

• Sole traders may find it harder to raise funds for the business

• Sole traders usually get more holidays than partners or directors

Why may an entrepreneur prefer to set up a business as a partnership?

• The entrepreneur would get to make all the decisions

• They entrepreneur would get to keep all the profit

• The business would benefit from a greater range of skills and knowledge

• The business would make more money quicker

Partnerships are set up by....

• One person

• Two or more people

• Ten or more people

• Twenty or more people

Which of the following are types of limited company? (Select 2 answers)

• Personal

• Private

• Public

• Premier

A limited company is owned by

• Shareholders

• Stakeholders

• Directors

• Employees

Disadvantage of a Sole trader:

• Expensive to create

• Hard to employ people

• Doesn't generate much profit

• Unlimited liability

An advantage of operating as a sole trader...

• Owner receives all profit

• No need to pay tax

• Investment from shareholders

• Cheaper advertising

A company with limited liability

• Sole Trader

• Partnership

• Public limited company

• Private limited company

An advantage of a partnership...

• More profit for the owners
• Easier to recruit
• Shared responsibilities
• Unlimited liability