Owners can opt to run their businesses as sole traders, partnerships or private limited companies. As the business expands it may decide to become a public limited company or to offer franchises.
What is the main advantage of being a sole trader?
Be able to make quick decisions
Who is limited liability an advantage to?
What is a partnership?
A business owned by shareholders
One person trading alone
Two or more individuals trading together
Who is a company controlled by?
What legal identity does a company have in the eyes of the law?
No legal identity
Its own legal identity
As shared legal identity with shareholders
What is a business that sells the right to use a business idea?
Which of the following is NOT an advantage offered by a franchise?
A prime location
A tested product
A well known brand
Who is a franchise bought by?
Which type of business does NOT usually have limited liability?
A public limited company
Who has legal responsibility to settle debts in a company with unlimited liability?