Types of businesses_13.01

“Sleeping” or “silent” partners:

• Can lose their personal possessions

• Can lose the amount of their investments

• Have unlimited liability

In a private limited company:

• The general public can buy shares

•  The business will stop when one of the owners dies

• Shareholders have limited liability

One of the main advantages of the Partnership is:

• Simplicity

• Unlimited liability of all partners

• Better terms for a loan in a bank

In which business structure shareholders hold no real power?

• Sole Proprietorship

• Public Limited Company

• Partnership

Why is it challenging for sole traders to raise finance for expansion?

• Limited access to loans

• Lack of profitability

• Difficulty in finding investors

What is liability in the context of a business?

• The ability of a business to generate profit

• The responsibility for the debts of the business

• The legal structure of a business.