Gr9_T1_Checkpoint2

What is a sole trader?

• A non-profit organization

• A business owned and run by one individual

• A business owned and run by the government

• A business owned by two or more people

Which of the following is an advantage of being a sole trader?

• Profit is all yours.

• Limited liability

• Too much work

• No help from partners.

Two friends, Sultan and Nasser, plan to start a bakery together. Both invested 50% of the capital required. They will share the work and the profit. What type of business structure is this?

• Franchise
• Joint venture

• Sole proprietorship
• Partnership

What is a partnership?

• A business owned by one person

• A business owned by shareholders

• A business owned by the government

• A business owned by two or more people

Sultan and Nasser are partners in a bakery. Sultan decides to take on a loan (قرض) for the business without informing Nasser. Under a partnership contract, who is liable for the debt (من المسؤول عن القرض)?

• Sultan

• The bank

• Both Sultan and Nasser

• Nasser

Sultan and Nasser are facing a big conflict over the best way to expand the business. Is this ........................................of a partnership.

• advantage

• disadvantage

What does "unlimited liability"(مسؤولية غير محدودة) mean for business owners?

• Owners are not responsible for business debts.

• Business owners can only lose their business assets.

• Owner is responsible for all business debts, he may lose his house...

• The bank is responsible for business debts.

MacDonalds is a franchise. The best definition of a franchise is......

• A public sector business.

• A partnership between two parties to share profits.

• when an existing business allows another business to use its name, logo, and products

• A form of government business.

Franchises are popular in..........industry.

• technology
• education

• automotive
• food and beverage

The business who sells the brand name, logo, and idea is called.......

• seller

• franchisee

• Franchise
• franchisor