FORMS OF BUSINESS ORGANIZATION

A business with one owner is known as a:

• Company

• Sole trader

• Partnership

The two forms of business ownership with unlimited liability are:

• Sole trader

• Public company

• Partnership

• Private company

Advantages of a sole trader are:

• Limited liability

• The owner makes all the decisions

• The owner takes all the profit

• Can raise substantial capital

Advantages of a partnership are:

• The partners split the profit

• Unlimited liability

• Raise more capital than a sole trader

• Share the workload

Which of the following best describes the term limited liability? If the business fails:

• Personal possessions of the owner can be taken to pay any debts

• The owner is personally liable for all the debts of the business

• There is no limit on the amount the owner has to pay to settle debts

• The owner only loses the amount invested in the business

It is a form of business ownership, where there is one owner who's responsible for the business.

• SOLE PROPRIETORSHIP

• PROPRIETORSHIP

• SOLE PREPRIOTERSHIP

• SOAL PROPREITORSHIP

The type of business ownership in which all business decisions are the sole responsibility of the owner.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

These business owners may have trouble raising capital.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise