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WorksheetsS3 Types of Business
Total questions: 18
Worksheet time: 9mins
Unlimited liabilty means...
that you only lose what you invest in the business if it fails
that you are responsible for all business debts if the business fails, you could even lose personal possessions
A partnership can have how many partners?
2-22
2-30
2-28
2-20
What does a partnership agreement contain? (pick 3)
Their roles
Their responsibilities
How profits/losses are to be shared
Their qualifications
I want to open a dog walking company to earn some extra money. What kind of company should I start?
Private limited company
Sole trader
Partnership
Franchise
What feature do a sole trader and a partnership share?
Unlimited liabilty
Share the profits
Shared responsibilty
Heavy workload
Who owns and controls a private limited company?
The shareholders
The managers
The employees
You have to be invited to buy shares in a private limited company
True
False
Which company started as a sole trader?
Which company started as a partnership?
The Franchisee pays the franchiser a % of sales or a set royalty each year for use of the business name and products/services.
True
False
Pick 2 disadvantages of a Private Limited Company
Profits are shared among more people
Competitors may be able to access financial information
Difficult to raise money
High failure rate
Pick 2 advantages of a franchisor
Risks and uncertainty are shared
Increase market share without heavy investment
Company carries on regardless of personnel changes
What sector of economy do sole traders operate in?
Private
Public
Voluntary
What sector of economy do franchises operate in?
Private
Public
Voluntary
What sector of economy does the NHS operate in?
Private
Public
Voluntary
What sector of economy does the British Heart Foundation operate in?
Private
Public
Voluntary
What are the 3 sectors of economy?
Private
Public
Voluntary
Charities
A social enterprise...
Relies on donations
Aims to make a huge profit
Has a main social or environmental aim
Is owned by shareholders
