Types of Business Organisations

Sole trader businesses are owned and managed by..

• 2-20 people

• Multiple owners

• 1 person

• Partners

Which of the following businesses is likely to have the most amount of capital

• Partnership

• Sole Trader

• Public limited

Number of partners in a partnership business are.....

• Unlimited

• 200 maximum

• 2 to infinite

• 2-20 partners

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

• Partnership

• Sole Proprietorship

• Franchise

• Private limited company

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

• Franchise

• Partnership

• Private Limited Company

Which of the following is the definition for sole proprietorship

• business investment that involves renting or leasing another successful business model

• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

• unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;

• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued

Which of the following is the definition for Franchise

• business investment that involves renting or leasing another successful business model

• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm

• unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm

• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued

Which of the following is an advantage of a partnership?

• Which of the following is an advantage of a partnership?

• partnerships can usually attract financial capital more easily than proprietorships.

• management is hard between two or more people

• They are inefficient.

This type of business is owned by many people called shareholders.

• Sole Proprietorship

• Partnership

• Limited Companies

• Franchise

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

• Sole Proprietorship

• Partnership

• Corporation

• Franchise