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WorksheetsSGS Edexcel 1.4 Business Ownership
Total questions: 30
Worksheet time: 15mins
A feature of being a sole trader
Owned by one person
Owned by 2-20 people
A feature of being a partnership
Owned by one person
Owned by 2-20 people
Which of the following professions could be run as a sole trader?
Plumber, electrician, mobile hairdresser, ice cream van business
Solicitor, accountant and doctor
Which of the following professions could be run as a partnership?
Plumber, electrician, mobile hairdresser, ice cream van business
Solicitor, accountant and doctor
What do sole traders and partnerships have in common?
They both have unlimited liability - if the businesses get into debt they are liable for all costs and could lose their home.
They both have limited liability, with shareholders only being liable for the amount they invested into the company.
Explain an advantage of being a sole trader
As there is more than one owner it is easier to raise capital (money) to start or expand the business
Easiest and cheapest form of business ownership to set up
Explain an advantage of being a partnership
As there is more than one owner it is easier to raise capital (money) to start or expand the business
Easiest and cheapest form of business ownership to set up
Explain an advantage of being a sole trader
The owner has complete control over the business and can make decisions without consulting anyone else.
With more than one owner, there are often more skills in the business
Explain an advantage of being a partnership
The owner has complete control over the business and can make decisions without consulting anyone else.
With more than one owner, there are often more skills in the business
Explain a disadvantage of being a sole trader
Decision making is slower as more people own the business
They can often work long hours and struggle to take holidays and time off when ill, because of the effort required to establish a business.
Explain a disadvantage of being a partnership
Decision making is slower as more people own the business
They can often work long hours and struggle to take holidays and time off when ill, because of the effort required to establish a business.
Explain a disadvantage of being a sole trader
There is the risk of unlimited liability as the sole trader is responsible for all debits. This may result in them having to sell personal possessions.
There is the risk of limited liability as the sole trader is responsible for all debits. This may result in them having to sell personal possessions.
Explain a disadvantage of being a partnership
There is the risk of unlimited liability as the sole trader is responsible for all debits. This may result in them having to sell personal possessions.
There is the risk of limited liability as the sole trader is responsible for all debits. This may result in them having to sell personal possessions.
What is the acronym for a private limited liability company?
PLC
PVC
LLC
PVLC
