1.1.6 Business Ownership: Pros and Cons

What is one of the main advantages of being a sole trader?

• Limited liability

• Independence

• Shared responsibility

• More sources of finance

Which of the following is a disadvantage of a partnership?

• Unlimited liability

• Limited liability

• Easy to set up

• Continuity

What is a key advantage of a private limited company?

• Unlimited liability

• Limited liability

• Loss of control

• Long working hours

Which of the following is a disadvantage of a sole trader?

• Limited liability

• More responsibility

• Shared workload

• More skills/expertise

What is an advantage of a partnership?

• Loss of control

• Slower decision-making

• Share resources and ideas

• Disclosure of financial accounts

Which of the following is a disadvantage of a private limited company?

• Continuity

• Legal procedure in setting up takes time and costs money

• Independence

• Easy to set up

What is a benefit of being a public limited company?

• Unlimited liability

• Continuity

• Loss of control

• Limited sources of resources

Which of the following is a disadvantage of a public limited company?

• Limited liability

• More capital

• Slower decision-making

• Independence

What is a common disadvantage shared by both sole traders and partnerships?

• Limited liability

• Unlimited liability

• More capital

• Specialised management

Which of the following is an advantage of a private limited company over a sole trader?

• Unlimited liability

• Limited sources of resources

• Limited liability

• Long working hours