Business Structures

What are things to consider when choosing a business structure? (Choose all that apply)

• Level of risk involved

• Capital requirements

• Size of the business

• Purpose of the enterprise

An individual who owns a business enterprise as a principal

• Franchise

• Sole proprietorship

• Company

• Trust

2-20 people carrying on a business / a commercial relationship

• Proprietorship

• Property

• Trust

• Partnership

Partnership advantages include:

• Easy to dissolve and recover share

• Not a separate legal entity

• Hard to change ownership

• Partners are fully responsible

equitable obligation that rests on a person who is personally responsible to deal with specified property for the benefit of another person

• Trust

• Partnership

• Proprietorship

• Franchisor

What are the 3 individuals within a trust

• Owner

• Settlor

• Trustee

• Beneficiary

What is a disadvantage of trusts?

• Flexible distributions

• Morals

• Can be expensive to establish

• Limited liability

An artificial entity that is recognised by the law

• Trust

• Company

• Sole proprietorship

• Franchise