Unit 1.4.1

________ liability means the owner of the business is personally responsible for any losses, debts, or claims that the business experiences and their personal assets such as a house or a car etc. are at risk should the business have insufficient funds to cover any of these liabilities.

• Limited

• Unlimited

For the owners of businesses with limited liability, any money already invested into the business by the entrepreneur is at risk and would be used to pay the business’ debts should it experience financial difficulty.

• True

• False

If a business has limited liability it is known as being ____________.

• Incorporated

• Unincorporated

When starting a business, entrepreneurs have three common options in terms of the legal structure, these are?

• Sole trader

• Partnership

• Private Legal Company (Ltd)

• Private Limited Company (Ltd)

Which one is the most popular type of business ownership in the UK?

• Sole trader

• Partnership

• Private Limited Company (LTD)

Which type of business ownership is typically seen as having increased admin costs and legal requirements?

• Sole trader

• Partnership

• Private Limited Company (LTD)

When an entrepreneur agrees to purchase and to set up a business using their brand and business model through the franchising route, they are known as a?

• Franchisee

• Franchisor

Which type of ownership and is often referred to as self-employed or sole proprietor and describes any business that is owned and controlled by one person?

• Sole trader

• Partnership

• Private Limited Company (LTD)

• Franchise

If a business is legally owned by two or more people but has a similar nature to a sole trader, which type of ownership is this?

• Sole trader

• Partnership

• Private Limited Company (LTD)

• Franchise

The abbreviation 'LTD' after Private Limited Company stands for?

• Live Trust Department

• Limited

• Legal Liability

• Legally operating business