Business ch .4

What are the advantages of being a sole trader?

• Few legal regulations and complete control.

• Shared responsibilities and more capital.

• Limited liability and separate legal identity.

• Unlimited life and easy to set up.

What is a disadvantage of being a sole trader?

• Unlimited liability.

• Shared profits.

• Limited access to finance.

• Both A and C.

What are the advantages of a partnership?

• More capital and shared responsibilities.

• Unlimited liability and limited life.

• Complex legal documents.

• No need for a written agreement.

What is a disadvantage of a partnership?

• Limited liability.

• Shared decision-making.

• Unlimited life.

• Easy to set up.

What are the common features of limited companies?

• Shareholders invest capital and have limited liability.

• Unlimited life and shared profits.

• No legal documents required.

• All of the above.

What is a private limited company?

• A company that sells shares to the public.

• A company that raises finance by selling shares to friends and family.

• A company with unlimited liability.

• A company that has a separate legal identity.

What is a public limited company?

• A company that sells shares to the general public.

• A company with limited liability.

• A company that is incorporated.

• All of the above.

What is a disadvantage of public limited companies?

• C and D

• Financial accounts are not private

• High status

• Legal formalities are complicated

What is a joint venture?

• A partnership between two businesses on a project

• A type of franchise

• A sole trader business

• A public limited company

What is a disadvantage to the franchisor?

• Expansion is paid for by the franchisee

• Risk of franchisee failure and loss of reputation

• Less risk for the franchisee

• High initial costs are avoided