Future business owners

Why is business so important?

• A way to get most goods and services; a way of making money

• Create job opportunities

• both a and b

• None of the above

A sole trader:

• works for someone else

• controls and manages the business as well is liable for all aspects of the business

• does not decide anything

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

Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?

• Sole trader

• Ltd

• Partnership

• Pty Ltd

Which of the following is a drawback for an sole proprietor setting up a business as a sole trader?

• Limited liability

• Unlimited liability

• Financial accounts are kept private

• Profit is shared

Which of the following is a disadvantage of setting up a business as a partnership?

• more ideas generated

• Shared workload

• Shared losses

• Shared profits

Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?

• Pty Ltd

• Sole trader

• Partnership

• Ltd

This type of organisation is a legal entity separate from its owners.

• Proprietary Limited and Limited company

• Franchise

• Partnership

• Sole proprietorship

This type of business is a contractual agreement with a parent company to sell its products/services in an area.

• Proprietary Limited company

• Sole Proprietorship

• Franchise

• Partnership

Law firms and doctor's offices are examples of.....

• Franchises

• Partnerships

• Sole Proprietorship

• Companies