Topic 2: Setting Up A New Enterprise

How many types of business organisation are there?

• 7

• 6

• 8

Which of the following business organisation own by one person only?

• Partnership

• Sole Trader

Which of the following statement define "sole trader"?

• A business that is owned and run by just one person though it may employ staff.

• A company that is legally independent from its shareholders, who as a result have limited liability.

• A type of business organisation that is owned by two or more people.

Sole trader and partnership is a/an __________.

• Incorporated enterprise

• Social enterprise.

• Unincorporated enterprise.

What are the other common features of Sole Trader and Partnership?

• Both business organisation has limited liability.

• Both business organisation has unlimited liability.

• Both business organisation is an incorporated business.

What is the advantage of start-up a business as sole trader?

• It is not easy to raise finance

• •The owner is fully responsible for all debt.

• •The owner can keep all the profits.

Which of the following is the disadvantages to start-up a business as sole trader?

• •Cheap, quick and simple to start the business activity.

• •The owner can make his/her own decisions and has full control of their business.

• •It is difficult to raise finance, so often the owner has to rely on personal saving.

Which of the following define "Partnership"?

• A business that is owned and run by just one person though it may employ staff.

• A business that is owned by two or more people, known as the partners.

• A company that is legally independent from its shareholders, who as a result have limited liability.

Which of the following statement is the advantages of setting up a new business as partnership?

• •The decision-making and workload is shared.

• •The decision made by one partner is legally binding on all the others.

• •It is difficult to raise finance, so often entrepreneurs have to rely on personal savings.

What is the disadvantage of setting up a new enterprise as "Partnership"?

• •The partners have full control of their business.

• •The partners can keep all the profits.

• •Disagreement and conflicts between partners can slow down the business.