Unit 201 ppt 3 (Charectaristics of self employment)

What is a sole trader in the context of the UK BSE industry?

• A) A company with limited liability and multiple shareholders

• B) A self-employed individual who owns and operates their business alone with unlimited liability for business debts

• C) A legal entity separate from its owners with limited liability for the company's debts

• D) A partnership where two or more individuals share ownership and liabilities

What characterizes a limited company in the UK BSE industry?

• A) A business owned by a single individual with unlimited liability

• B) A partnership with shared ownership and liabilities

• C) A separate legal entity from its owners with limited liability for the company's debts

• D) A self-employed individual with no legal distinction from the business

Which of the following is NOT as a key difference between a sole trader and a limited company ?

• Legal status

• Liability

• Employee number

• Taxation

What factors might influence the choice between a sole trader and a limited company?

• The color scheme of the business logo

• The nature and size of the business, long-term goals, and personal preferences

• The number of products offered

• The business's marketing strategy

Which of the following is NOT listed as an advantage of being a sole trader?

• Easy to set up

• High financial risk

• Complete control

• Flexibility

What is one of the financial benefits of being a sole trader mentioned in the text?

• Higher taxes

• Lower costs

• Increased expenses

• Complicated accounting

According to the text, what does being a sole trader allow for in terms of operation?

• Rigidity

• Flexibility and personal control

• Limited privacy

• Complex setup

What is one of the disadvantages of being a sole trader?

• Unlimited growth potential

• Easy administrative tasks

• Unlimited personal liability

• Specialisation in multiple fields

Which of the following is a disadvantage of being a sole trader due to financial concerns?

• High investment returns

• Difficulty obtaining finance

• Low taxation rates

• Financial support from the government

As a sole trader, what might limit the expansion of the business?

• Limited growth potential

• Wide range of products and services

• Large corporate partnerships

• High consumer demand