Business Start Up

THREE big choices the entrepreneur

must make are around..

• Organisational Options

• Production Options

• Financial Options

• All of the above

Which of these is not an Organisational option?

• Sole trader

• Partnership

• Public Limited Company

• Private Limited Company (LTD)

A Sole Trader is a business set up, owned and run by one person. An example would be..

• Zara

• Manchester United

• Farmer

• None of the above

Which of these is not an advantage of a sole trader?

• Easy to set up

• Long hours/ stress

• Keep all profits

• Decisions made quickly

• Confidential type business

Which of these is a disadvantage for a sole trader?

• Unlimited liability

• Difficult to run - lack skills/experince

• No continuity of existence

• All of the above

Unlimited liability means the shareholders cannot be held personally liable for the debts of the company, i.e. their personal assets cannot be taken

• True

• False

A Partnership is a business set up, owned and managed by 2 – ____ partners, e.g. doctors

• 15

• 20

• 4

• 11

A partnership agreement also called a _________ ___ _________ is an agreement between partners who want to run a joint business.

• Certificate of incorporation

• Companies registration office

• Deed of partnership

• None of the above

Which of these is an advantage of a Partnership?

• A partnership is not a ‘separate legal entity’ – if a legal issue arises each partner can be personally sued.

• Decision-making is slower due to consulting all partners.

• More capital is available to pay for the costs of setting up and growing the business

• Profits have to be shared in the pre-agreed profit-sharing ratio. This might lead to conflict

Which of these is a disadvantage of a Partnership?

• Each partner brings a different skill set to the business.

• The partnership should make better decisions as there are other people to consult

• It is a confidential type of business – no one else has access to the business’s accounts

• The partners have unlimited liability – the general partners will be held ‘jointly and severally liable’ for all of the debts of the business, which may result in the sale of personal assets