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WorksheetsU1- Bus Enterprise Environ- Ownership 1
Total questions: 10
Worksheet time: 14mins
The private sector enterprises are based on ownership, which is held by an individual or groups of individuals who adopt a legal status and /or sign a contract
True
False
A sole trader is businesses are generally "one person" businesses, commonly known as self-employed
True
False
Alphabet Cars is a taxi-driving business operating in East London providing taxi services to people and businesses. John opened and has been running it as a family business since last three years and John's sons aged 23 and 25 work part-time in Alphabet Cars. Therefore, Alphabet Cars is
Sole trader
Partnership
Private Limited Company
Family Trust
Alphabet Cars is a taxi-driving business operating in East London providing taxi services to people and businesses. John opened and has been running it as a family business since last three years and John's sons aged 23 and 25 work part-time in Alphabet Cars. John is thinking of expanding his business and is considering keeping personal and business assets and liabilities separate. Which structure would you advise him?
Sole Trader
Partnership
Private Limited Company
Public Limited Company
Alec Plumbing is a sole trader, therefore Alec considers himself as the only owner with limited liability. This means Alec's personally responsible for Alec Plumbing's debts
True
False
Alec Plumbing is a sole trader, therefore Alec can be asked to use his personal savings or sell his personal property to pay any debts, bills or payments Alec Plumbing owes.
True
False
Alec Plumbing is a sole trader, therefore Alec can be asked to use his personal savings or sell his personal property to pay any debts, bills or payments Alec Plumbing owes. Such a situation is called
Limited Liability
Unlimited Liability
Closed Liability
Open Liability
Charities such as Princes Trust who offer grants to young people starting their own businesses are generally Private Sector Enterprises - Sole Traders
True
False
While it is easy to set up sole trader enterprise and owner keeps all the profit, there could be certain disadvantages. Choose disadvantages from following statements
It has unlimited liability, which means the "sole trader" is personally responsible for any business debts and can be asked to use his personal savings, property to pay them
Owner is flexible to run the business, how they want and take holidays when they want
If the business has no other employees, the business may need to close if owner is ill or on holidays
If a business dispute arises, owner can be sued
The owner may need to multitask and learn new skills besides running and managing the business or may need to hire others which then increases costs to the business
James wants to start his own business, He is looking to create and sell apps at his college that will help learners with their coursework. The app is ready to be sold but doesn't know how to go about starting the business. He feels discouraged and wants to give up. He gets advice from the Princes' Trust and his mentor and is now more confident. Write 3 - 5 advantages of being a sole trader that his mentor pointed out.
