Yr7/8 Business Studies - Unit 1

An advantage of an owner operating as a sole trader is...

• Can control how the business operates

• Limited liability

• Shared workload

• Easy access to additional capital

Which of the following is an advantage of operating as a partnership.

• Limited Liability

• Unlimited Liability

• Shared Workload

• Owner gets to receive all the profits

A public company has ________ shareholders.

• unlimited

• 2 - 50

• 2 - 20

• 1

An advantage of purchasing a franchise is...

• Flexibility in how to run the business

• Established brand recognition

• Expensive to purchase

• Owner get to receive all the profits

A disadvantage of a franchise is...

• Limited flexibility in how to operate the business

• Training is provided by the franchisor

• Required to pay fees to franchisor

• Advertising is provided by the franchisor

An advantage of starting a business from scratch is...

• Get to choose the location of the business

• It can be expensive to start up

• Flexibility in how big or small you can start the business

• Customer base is already established.

The three options of establishing a business is...

• Purchase an existing business

• Starting a business from scratch

• Purchasing a franchise

• Incorporation

_________ liability is where the owner is responsible for the debts of the business.

A ____________ is a person who owns part of a company.

A set of buyers sharing common needs or characteristics that the business decides to sell its goods/services to.

• Target Market

• Consumers

• Company

• Profit