Types of Businesses

Question 1

Sole trader

Answer 1

also known as a sole proprietor
only one owner

Question 2

Partnership

Answer 2

owned and operated by multiple people (2-20 persons)

Question 3

Partnership Deed

Answer 3

Outlines the rights and responsibilities and capital invested by each partner. Also outlines the profit/loss sharing ratio

Question 4

Companies

Answer 4

Also called corporations
This is a group of people (2-50) interested in the same thing coming together to facilitate trade and hoping to make a profit.
has a board of directors

Question 5

Private limited company

Answer 5

unable to sell shares to the public and typically owned by family

Question 6

Public limited company

Answer 6

can sell shares to the public; has lots of shareholders

Question 7

Cooperative

Answer 7

A group of people with a common goal

Question 8

advantages of a cooperative

Answer 8

can promote good quality goods
profits are shared
limited liability