Types of Business Organisations

Sole trader businesses are owned and managed by..

• 2-20 people

• Multiple owners

• 1 person

• Partners

Which of the following are advantages of a Public limited company

• There is no restriction on the buying and selling or transfers of shares.

• There is large opportunity to raise very large capital sum in the business.

• All shareholders have limited liability.

• Not a seperate legal entity

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

• Partnership

• Sole Trader

• Public limited

Which of the following are advantages of Private Limited Companies

• Unlimited Liability

• Seperate legal entity

• The company cannot offer shares to the general public

• Legal formalities to start up

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

A partnership has ______________ personal liability

• unlimited

• limited

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

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

What is a business owned and operated by two or more people?

• Sole Proprietorship
• Partnership
• Corporation