Which type of private sector business organization involves two or more people sharing ownership and operation of the business?

Which type of private sector business organization limits the liability of its owners and restricts share transfers?

Which type of private sector business organization can sell shares to the public and is listed on a stock exchange?

Which type of private sector business organization allows individuals to operate their own business under the brand and business model of an established company?

Which type of private sector business organization is formed when two or more businesses agree to work together on a particular project?

What is the most common form of business organisation?

A sole trader business is owned and operated by how many people?

The owner of a sole trader business is called the sole proprietor.

What must a sole trader do annually with the Government Tax Office?

In some countries, the name of the business must be registered with which authority?

In the UK, what is sufficient for the owner regarding the business name?

In some industries, what must a sole trader obtain to sell alcohol or operate a taxi?

Who should start as a sole trader? Fill in the blank: People who ________ are suitable to start as a sole trader.

Who should start as a sole trader? Fill in the blank: People who do not need much ________ to get the business going are suitable to start as a sole trader.

Who should start as a sole trader? Which of the following is an example of a business suitable for a sole trader?

Fill in the blank: One disadvantage of a sole trader is that there is ______ to discuss business matters with.

Fill in the blank: Unlimited Liability means the business is not a separate legal unit, and the owner is fully responsible for any ______ that the business may have.

Fill in the blank: Limited capital for expansion purposes is a disadvantage for a sole trader because sources of finance are limited to the owner's ______, profits made by the business, and small bank loans.

Fill in the blank: Banks are often reluctant to lend large amounts to small businesses, thus the business remains ______.

Fill in the blank: A sole trader's business is unlikely to benefit from economies of ______.

Fill in the blank: Limited to no training for staff is a disadvantage for a sole trader, which limits ______ careers.

Fill in the blank: If the owner of a sole trader business is ill, there is no one who will take ______ of the business.

Fill in the blank: Limited continuity means that legally the business dissolves and cannot be passed on or ______ when the owner dies.

Fill in the blank: One advantage of a sole trader is that there are ______ legal regulations when setting up the business.

Fill in the blank: As a sole trader, you are your own boss and have complete control over the business. There is no need to ______ with or ask others before making decisions.

Fill in the blank: A sole trader has the freedom to choose their own holidays, hours of work, prices to be charged, and whom to ______.

Fill in the blank: A sole trader has close contact with their own customers, which provides the personal satisfaction of knowing regular customers and the ability to respond quickly to their ______ and demands.

Fill in the blank: A sole trader has the incentive to work hard as they are able to keep all of the ______ after TAX is paid and does not have to share these.

Fill in the blank: A sole trader does not have to give information about the business to anyone else other than the ______. They enjoy complete secrecy in business matters.

What is a partnership?

In some countries, such as India, what is the maximum limit of people in a partnership?

Partnerships can be set up very easily. You can just ask someone you know to become your partner in the business. This is called a ______ agreement.

A written agreement with a partner is called a:

Without a written partnership agreement, partners may disagree on who put most capital into the business or who is entitled to more of the profits.

Which of the following is an advantage of a partnership?

Fill in the blank: In a partnership, the responsibilities of running the business are _________

In a partnership, absences and holidays do not lead to major problems because one of the partners is always available.

Why are all partners motivated to work hard in a partnership?

In a partnership, any losses made by the business would now be shared by the partners. What is the term used to describe this liability?

Fill in the blank: In a partnership, partners are jointly & severally liable based on the partnership agreement. If the business failed, then creditors could still force the partners to sell their own ______ to pay business debts.

Fill in the blank: A partnership is not a separate legal entity. If one of the partners died, then the partnership would end (dissolve) and a new ______ needs to be established.

Fill in the blank: Partners can disagree on business decisions and consulting all partners takes ______.

Fill in the blank: If one of the partners is very inefficient or actually dishonest, then the other partners could suffer by losing ______ in the business.

Fill in the blank: Most countries limit the number of partners to ______ and this means that business growth would be limited by the amount of capital that this number of people could invest.

Which of the following is a disadvantage of a partnership?

What does LLP stand for?

Fill in the blank: Shares in a Limited Liability Partnership (LLP) ______ be bought and sold.

Which of the following is TRUE about a Limited Liability Partnership (LLP)?

Read the passage below and answer the question: In some countries it is possible to create a Limited Liability Partnership. The abbreviation for this new form of legal structure is LLP. It offers partners limited liability but shares in such businesses cannot be bought and sold. This type of partnership is a separate legal unit which still exists after a partner’s death, unlike ordinary partnerships that end with the death of one of the partners.

According to the passage, who are shareholders in a company?

Fill in the blank: In a private limited company, the directors are usually the most important or ______ shareholders.

Which of the following is NOT mentioned as a feature of a private limited company?

A company will continue to exist even if one of the owners should die.

Fill in the blank: Companies are jointly owned by the people who have ______ in the business.

Which two important forms or documents must be sent to the Registrar of Companies when starting a company?

What does the Articles of Association contain?

Fill in the blank: The Memorandum of Association contains very important information about the company and the _________

Which of the following is an advantage of selling shares to friends and family?

Shareholders have limited liability and cannot lose their personal possessions; they only lose what they invested.

Fill in the blank: The name of a private company must end in (____) Ltd - Proprietary Limited.

Shareholders/owners keep control of the business as long as they do not ________ their shares.

Fill in the blank: Both of these documents assure the company is correctly run and assures shareholders about the _______ & structure of the company.

Fill in the blank: Once the documents are received, the Registrar of Companies will issue a _______ of Incorporation, which allows the business to trade/start.

Fill in the blank: Private company shares are not freely ________, thus cannot be sold to the public, and all shareholders must agree to whomever you sell the shares to.

Fill in the blank: The company accounts need to be sent once a year to the _______ of Companies where the finances are inspected.

Shares of a private company can be sold to the general public, making it possible to raise large sums of money.

Read the passage below and answer the question: This form of business organisation is most suitable for very large businesses. Most large, well-known businesses are public limited companies as they have been able to raise the capital to expand nationally or even internationally. Students often make two mistakes about public limited companies: 1. Public limited companies are not in the public sector of industry, as many students believe. They are not owned by the government but by private individuals and as a result they are in the private sector.

What title is given to public limited companies in the UK?

Which title is used for private limited companies in the UK?

In South Africa and some other countries, what title is used for public limited companies?

Fill in the blank: One advantage of a public company is that it offers ________ liability to shareholders.

Fill in the blank: A public company is an incorporated business and has a separate ________ identity to the owners or shareholders.

Fill in the blank: There is now the opportunity to raise very large ________ sums to invest in the business in a public company.

Fill in the blank: There is no limit to the number of ________ a public limited company can have.

There is no restriction on the buying, selling or transfer of ________ in a public company.

Fill in the blank: A business trading as a public limited company usually has high ________ and should find it easier to attract suppliers prepared to sell goods on credit and banks willing to lend to it than other types of businesses.

Fill in the blank: One disadvantage of public limited companies is that the legal formalities are quite _______ and time-consuming.

Fill in the blank: Selling shares to the public is _______. The directors will often ask a specialist merchant bank to help them in this process, which will charge a commission for its services.

Fill in the blank: There is a very real danger that although the original owners of the business might become rich by selling shares in their business, they may lose _______ over it when it 'goes public'.

According to the passage, who has control over how a sole trader business is run?

It is impossible for all shareholders in a public limited company to be involved in taking decisions, although they are all invited to attend the Annual General Meeting (AGM).

Fill in the blank: The only decision that shareholders can have a real impact on at the AGM is the election of _______ as company directors.

According to the diagram, who is responsible for day-to-day business decisions in a public limited company?

According to the passage, the directors cannot possibly control all of the business by themselves so they appoint other managers, who may not be shareholders at all, to take day-to-day decisions.

What is meant by the 'divorce between ownership and control' in a business?

Read the passage below and fill in the blank: Shareholders own, but the directors and managers control. Sometimes, this is called the ______ between ownership and control.

Directors and managers may run the business to meet their own objectives. These could be increased status, growth of the business to justify higher management salaries, or reducing ______ to shareholders to pay for expansion plans.

Shareholders might not be able to influence the decisions made by directors and managers because:

What is a franchise?

Read the following definition and answer the question: A franchise is a business based upon the use of the brand names, promotional logos and trading methods of an existing successful business. The franchisee buys the licence to operate this business from the franchisor. Who is a franchisee?

Is KFC an example of a franchise?

Is McDonald's an example of a franchise?

Fill in the blank: The franchisee buys a ______ from the franchisor to use the brand name.

Fill in the blank: Expansion of the franchised business is much faster than if the franchisor had to ______ all new outlets.

Fill in the blank: The management of the outlets is the responsibility of the ______.

Fill in the blank: All products sold must be obtained from the ______.

Multiple Choice: Which of the following is an advantage to the franchisor?

Fill in the blank: The chances of business failure are much reduced for the franchisee because a ______ product is being sold.

Fill in the blank: The franchisor pays for ______ for the franchisee.