Understanding Business Ownership Types

What is a sole trader?

• A person who sets up their own business

• A business owned by two or more people

• A company that sells shares to the public

• A business that operates under a franchise

What is one benefit of being a sole trader?

• Shared ideas

• Keep all the profits

• Limited liability

• Can take time off

What is a drawback of being a sole trader?

• Profits are shared

• Unlimited liability

• Have to pay royalties

• Requires legal documentation

What is a partnership?

• A business owned by a single person

• A business model where you pay royalties

• Two or more people in business together

• A company that sells shares to the public

What is one benefit of a partnership?

• Keep all the profits

• No arguments as you make all the decisions

• Shared ideas

• Limited control of decisions

What is a drawback of a partnership?

• Unlimited liability

• Disagreements on business decisions

• Have to publish full accounts

• Limited liability

What is a franchise?

• A business owned by a single person

• A business model where you can use an established brand

• A company that sells shares to the public

• A business owned by two or more people

What is one benefit of a franchise?

• Keep all the profits

• Use established brand identity

• Unlimited liability

• No time off for illness or holidays

What is a drawback of a franchise?

• Have to pay royalties to the franchise

• Shared ideas

• Can raise capital from selling shares

• Limited liability

What is a private limited company?

• A business owned by a single person

• A business model where you pay royalties

• A company where you can sell shares to friends and family

• A business owned by two or more people