Week 2 summary sheet questions

What are the four roles of entrepreneurs mentioned in the document?

• Innovators, Organisers, Decision makers, Risk-takers

• Managers, Leaders, Financial advisors, Marketers

• Accountants, Salespeople, Human resources, Technicians

• Designers, Strategists, Consultants, Investors

What is the key characteristic of unincorporated businesses?

• They have limited liability

• They are owned by a large group of people

• There is no legal difference between the owner and the business

• They are always incorporated

What does unlimited liability mean for the business owner?

• The owner is only responsible for the debts up to the amount they invested in the business

• The owner is not responsible for any debts

• The owner is personally liable for all business debts

• The owner's liability is limited to the business assets only

Which of the following is true for incorporated businesses?

• They cannot be taken over or sold

• They have unlimited liability

• They have a separate legal identity

• They are always owned by one person

What is a sole trader responsible for if the business fails?

• Only the capital they have invested in the business

• No financial responsibilities

• All the business debts and could lose personal assets

• Only the debts up to a certain limit set by law

How many people can own a business together in a partnership?

• Between 1 and 10

• Between 2 and 20

• Between 3 and 30

• More than 20

What is a DEED OF PARTNERSHIP?

• A document that outlines the daily operations of a partnership

• A binding legal document that states the rights of partners

• A financial statement required by law for partnerships

• A certificate of incorporation for a partnership

Which of the following is NOT an advantage of a sole proprietorship?

• Owner keeps all the profit

• Flexibility to adapt quickly

• Unlimited liability

• May qualify for government help

What is the main disadvantage of a limited partnership for sleeping partners?

• They have unlimited liability

• They can lose the amount of capital they invest

• They are responsible for running the business

• They cannot have their own business idea

What is the role of a franchisor in a franchise?

• To provide training and support to the franchisee

• To run the day-to-day operations of the franchise

• To sell the right to use their name, brand, products, and trade under their name

• To buy the rights to use a business idea