A business with one owner is known as a:

• Company

• Sole trader

• Partnership

A business run by 2-20 people and has unlimited liability is known as a:

• Company

• Sole trader

• Partnership

The two forms of business ownership with unlimited liability are:

• Sole trader

• Public company

• General 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

What is the most common form of business ownership?

• Private Limited Company

• Public Limited Company

• Sole Proprietorship

• Franchise

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 of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?

• Profit is shared

• Financial accounts are kept private

• Limited liability

• Unlimited liability

A private limited company may change into a public limited company because it wants:

• Limited liability

• To raise additional finance

• Unlimited liability

• To avoid takeover

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

• Sole proprietorship

• Partnership

• Private Limited Company

• Corporation