WorksheetsSole trader, Partnership and Franchises
Total questions: 30
Worksheet time: 3600secs
Entrepreneurs are:
Innovators
Decision-makers
Comfortable with risk
All of the above
The type of business where the owner keeps all the profit is a:
Social enterprise
Partnership
Franchise
Sole trader
The type of business with the most freedom to make your own decisions is a:
Sole trader
Partnership
Franchise
Government organisation
A partnership exists between:
One owner and their family
2 to 20 people
20 or more people
2 people only
A deed of partnership is:
A document that states what product a business sells
A type of business
A business book
A legal document
A franchisor offers a franchisee:
a license to trade
training to start the business
materials
all of the above
A franchisee must give the franchisor:
Start up fees
Business ideas
Products
Employees
An advantage of a franchise is:
sharing the profit with the franchisor
lack of freedom to follow own ideas
Less risk
making no money
Worker cooperatives are:
where members share the profit
where employees share the profit
where a sole trader earns the profit
where the government earns the profit
Social enterprises are known as:
Non-profit organisations
Organisations that help people
Organisations that can protect the environment
all of the above
Which of the following is an advantage for a sole trader
Limited liability
Easier to raise money than a partnership
Unlimited liability
Freedom to make own decisions
Taking risk in business is a key role of which of the following:
Accountant
Entrepreneur
Company director
marketing manager
What does unlimited liability mean?
You are responsible if the business fails
You are not responsible if the business fails
You can make an unlimited amount of money
It is hard to start a business
There are 4 owners in a business partnership. The business makes a profit of $100. Each owner makes:
$400 profit
$100 profit
$25 profit
$20 profit
A sole trader takes:
A massive amount of profit
No profit
Some of the profit
All of the profit
An advantage of a franchise is:
You need to pay a start-up fee
People know your brand
People don't know your brand
Your business is restricted in what it can do
An advantage of a partnership is:
The profit has to be shared
Partners may disagree with each other
Partners have unlimited liability
More money can be raised with more owners
Examples of sole trader businesses in the tertiary sector includes
manufacturers and small builders
farmers and fishermen
miners and footballers
hairdressers and teachers
One disadvantage of sole proprietorship includes
owner keeps all the profit
owner has complete control
no legal requirements to set up
personalized services to customers
owners have unlimited liability
Which of the following is the definition for Franchise
business investment that involves renting or leasing another successful business model
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
Which of the following is an advantage of a partnership?
Which of the following is an advantage of a partnership?
partnerships can usually attract financial capital more easily than proprietorships.
management is hard between two or more people
They are inefficient.
This type of business is a contractual agreement with a parent company to sell its products/services in another area.
Sole Proprietorship
Partnership
Corporation
Franchise
A partnership has ______________ personal liability
unlimited
limited
A document that partners can refer to when a conflict happens in a partnership.
The deed of partnership
The partnership contract
The constitution
These are not legally registered as companies or corporations.
unincorporated businesses
incorporated businesses
One of the disadvantages of a sole trader business is that:
capital is limited to owner’s savings and bank loans
decisions take too long to make
as they are government owned there is no profit motive
the owners may disagree
One of the reasons for a business buying a franchise is because:
it is always much cheaper than setting up a new business venture
there is complete control over important decisions
the business can use its own name in advertisements
the risks of failure are lower as it is buying a well known business idea
One of the advantages to a business of selling a franchise licence to franchisees is that:
the business can expand more quickly
the franchisor owns all of the shops
the businesses buying the franchises are certain to be successful
the products sold in each shop will be different
One of the limitations for an entrepreneur of setting up a new business as a franchise is:
the profits of the franchised business will be lower than if it was not a franchise
a share of the costs will have to be paid to the franchisor
some decisions will be taken by the franchisor not the franchisee
consumers will be less likely to have heard of the franchisor than the entrepreneur
