sole trader and partnerships

An association of 2 to 20 individuals operating a business to make a profit is called

• partnership

• franchise

• joint venture

• sole trader

One advantage of a sole trader is

• the ability to utilize divisions of labour

• easy access to financial assistance from government

• the swift continuance of business affairs despite mishaps

• the adoption of conservative strategy in dealings

A sole trader is considering entering a partnership, because

• capital and expertise will increase

• there will be guaranteed remuneration

• independence exists greatly with policy alterations

• disagreement is non-existent

The main objective of the public sector is

• to make a profit

• to provide a service

• to provide advice

• to pay dividends

Which is a difference between private and public sector

• private sector and public sector are owned by citizens

• private sector is there to make a profit while public sector aims to provided necessary services

• Both are operated by taxpayers money

• none of the above

Which of the following best describes the term limited liability? If the business fails:

• Personal possessions of the owner can be taken to pay any debts

• The owner is personally liable for all the debts of the business

• There is no limit on the amount the owner has to pay to settle debts

• The owner only loses the amount invested in the business

Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?

• Profit is shared

• Financial accounts are kept private

• Limited liability

• Unlimited liability

A sole proprietor has to share the profits made by the business. True or False?

• True

• False

Why may an entrepreneur prefer to set up a business as a partnership?

• The entrepreneur would get to make all the decisions

• They entrepreneur would get to keep all the profit

• The business would benefit from a greater range of skills and knowledge

• The business would make more money quicker

A sole trader is responsible for all the debts of the business. True or False?

• True

• False