1.5.4- Forms of business

Which of the following would go into box A

• Limited Liability

• Unlimited Liability

• Unincorporated

• Incorporated

Which business form sees the owner and the business as two seperate entities?

• Unincorporated

• Incorporated

If a business and its owner are not seen as a seperate entities it has....

• Limited liability

• Unlimited liability

How many workers can a Sole Trader have?

• 1

• 2-20

• 21+

• However many they want

Which is simpler to run?

• Sole trader

• Partnership

A partnership is where 2-20 individual run a business. If they were to go into debt what would happen?

• Debt will be spread evenly between partners

• Debt will be given to the lead partner to spread how they deem fit

• A court will decide which partner made the mistake and give them the debt

• A partnership agreement will decide how debt will be managed.

Sole traders pay...

• Income tax

• Corporation tax

This business type can raise finances by selling shares to friends and family

• Public limited company

• Private limited company

• Sole trader

• Partnership

Which of the followings are risks assoiciated with PLCs

• Easier to raise capital

• Accounts are published

• Can have hostile takeovers

• Likely to have better supplier relationships

Who have lower tax rates?

• Incorporated

• Unincorporated