Soleproprietorship and partnership

To start a partnership business, what should be the minimum number of partners?

• 2

• 10

• 4

• 20

A partnership has between 2 and 10 ______________.

• employees

• shareholders

• owners

• customers

Unlimited liability means

• the business is closed down because of too much debt

• the owners' personal possessions can be used to cover the firm's debts

• the bank will refuse to give loans to the business

• the business will struggle to attract investors

Seema and Beena partnered together to provide food and clothing to the needy by collecting it from the neighbourhood. Can this be called a partnership firm

• Yes

• No

• Maybe

• None of the above

Which of the following is an advantage of being in a partnership?

• Ideas and decision making can be shared
• The most senior partner has responsibility for running the business
• Partners can have responsibility for many different areas of the business
• Each partner gets the same share of the profits

In a partnership, all profits are shared between the partners.

• False
• True

How many people own a sole trader business?

• 3
• 2
• 1
• 20

Are Soleproprietor large or small businesses?

• Large

• Small

An advantage of being a soleproprietor is

• you can take time off whenever you want

• you can grow your business really easily

• you can receive large amounts of finance from loans

• you receive all the firm's profit for yourself

A disadvantage of being a sole trader is

• a heavy workload creates stress and pressure
• a second opinion on important decisions is always available
• arguments and disagreements can harm the progress of the business
• the owner gets a smaller share of the profits