Business 8A 8B

A sole trader is...

• an individual who owns a fraction of a business.

• a person who owns and runs a business alone.

• 2 or more people that own a business.

One advantage of a sole tarder ...

• Bring more expertise to the business than one person

• Complete control over all the important decisions

• Greater stability

One disadvantage of a sole tarder ...

• There is a lack of continuity

• Greater chance for expansion.

• Greater stability

Partnership is ...

• 2 or more people in charge of a business.

• 2 or more people who buy products.

• 2 or more people who acquire goods and services in group.

The term 'sleeping partner' belongs to

• Companies

• Sole trader

• Partnership

One advantage of partnerships

• Flexibility

• They often have more efficient production.

• Close ties to costumers

One disadvantage of partnerships

• Flexibility

• Lack of continuity

• Profits have to be shared.

A shareholder is a person who ...

• owns the entire business and manage everything by his own.

• owns and runs a business using shares as his business tool.

• owns a fraction of a business in a form of shares.

Shareholders has limited liability.

• True

• False

The price of the shares do not decrease anytime.

• True

• False