Ownership Quiz

How many owners does a sole trader business have?

• One

• Two or more

• Shareholders

• Stakeholders

Give one advantage of owning a business as a sole trader.

• The owner can struggle to take time off (ill/holiday).

• The owner is responsible for the business’s debts.

• The owner makes all their own decisions.

• The owner must raise all the capital to start-up.

Give one disadvantage of owning a business as a sole trader.

• The owner decides what to do with any profits made.

• The owner is responsible for the business’s debts.

• The owner makes all their own decisions.

• There’s little to do in terms of setting up.

How many owners does a partnership business have?

• It has Shareholders

• One

• Two or more

• Just two

Give one advantage of owning a business as a partnership.

• More owners means more skills and ideas

• Owners could disagree on decisions / fall out

• Owners are responsible for the business’s debts

• Profits are shared between owners

Give one disadvantage of owning a business as a partnership.

• Capital comes from more than one source

• More owners means more skills and ideas

• Owners are responsible for the business’s debts

• Running of the business is split between owners

What is unlimited liability?

• A financial term referring to the absence of any liability in a business

• A business structure where owners have limited responsibility for the company's debts

• The maximum amount of liability insurance a business can obtain

• The legal obligation of an individual to personally cover all of a business's debts meaning personal assets can also be taken

Who has unlimited liability?

• Sole Traders

• Limited Liability Partnerships

• Partnerships

• Sole Trader & Partnership

What is limited liability?

• A business structure where owners have unlimited responsibility for the company's debts

• The maximum amount of liability insurance a business can obtain

• The legal protection that restricts an individual's financial responsibility to only the amount invested in a business

• A financial term referring to the absence of any liability in a business

Who has limited liability?

• Limited Liability Partnership (LLP) only

• Franchise

• Public (PLC) and Private (LTD) limited company only

• PLC & LTD & LLP