Business Ownership and Image BME 12 General

What is the maximum numbers of shareholders a small proprietary company can have?

• 100

• 50

• Unlimted

• 20

The ​ ​ (a)   is the ​ (b)   who buy the use of a ​ (c)   .

• franchisee
• person
• brand

Organize these options into the right categories

Groups:

(a) Advantages of a partnership

,

(b) Disadvantages of a partnership

• dissolution of partnership upon partner's exit
• limited control for individual partners
• partners can add money

• liability for partner's actions
• shared responsibility

• flexibility in management

• easier to raise capital

• potential for unequal workload
• difficulties in decision making
• potential for conflicts
• shared profits
• diverse perspectives

• complimentary skills

• lack of stability
• potential for increased productivity

• partners can add skills

What are the advantages of establishing a business as a sole trader?

• Advantages of establishing a business as a sole trader include simplicity, full control, direct profit access, and fewer regulations.
• Higher tax rates on profits
• Shared decision-making with partners
• Limited liability protection

​ (a)   refers to ​ (b)   who are​ (c)   and ​ (d)   to ​ (e)   but do not have paid employment.

• Unemployment
• people
• willing
• able
• work

Unskilled labour means

• tasks that involve management and supervision
• work that does not require specialized training or skills
• work that requires advanced technical skills
• employment that demands a tertiary degree

How can high unemployment impact a business?

• High unemployment leads to more job openings.
• High unemployment increases consumer spending.
• High unemployment has no effect on business operations.
• High unemployment can reduce consumer spending, lower sales, and create hiring challenges for businesses.

Sponsorships are a business

When inflation is high, consumers

• tend to reduce spending and seek cheaper alternatives.
• invest in high-risk stocks for quick profits.
• ignore price changes and continue buying as usual.
• increase their spending on luxury items.

What is the impact on businesses when inflations rates are low?

• Businesses struggle with unpredictable pricing changes.
• Low inflation leads to decreased consumer spending.
• Low inflation rates positively impact businesses by providing price stability, enhancing consumer confidence, and allowing for better financial planning.
• Businesses face higher costs due to increased wages.