ownership

Question 1

sole trader how many people?

Answer 1

one person owns the business

Question 2

sole trade liability?

Answer 2

unlimited

Question 3

unlimited liabilty

Answer 3

the business and owners have the same legal identity, this means that there is no limit to what can be lost if business fails

Question 4

sole traders

Answer 4

can employ people to work for them
usually small , local businesses

Question 5

advantages of sole traders

Answer 5

• complete control
• keep all profit
• easy to set up
• low capital , money invested

Question 6

disadvantages of sole traders

Answer 6

• stressful
• unlimited liability
• hard to raise capital

Question 7

partnership how many

Answer 7

between 2 and 20

Question 8

partnership liability?

Answer 8

unlimited

Question 9

partnerships

Answer 9

-specialisation of skill
- debt split equally

Question 10

advantages of partnership

Answer 10

• more ideas
  -share capital investment
• specialisation

Question 11

disadvantages of partnership

Answer 11

• arguments
• time wasting
• share profits

Question 12

LTD how many people

Answer 12

PRIVATE LIMITED COMPANY shareholders own company, can only be family and friends

Question 13

LTD liability

Answer 13

limited

Question 14

limited liability

Answer 14

shareholders and company have separate legal identities, only loose their investment

Question 15

advantage of LTD

Answer 15

limited liability
status is higher
right skills
consistent ownership

Question 16

disadvantages of LTD

Answer 16

lots of paper work
profit goes to shareholders not workers , called dividends

Question 17

PLC

Answer 17

public limited company

Question 18

PLC liability

Answer 18

limited

Question 19

advantages of PLC

Answer 19

easy to get capital
easy to get finance

Question 20

disadvantages of PLC

Answer 20

shareholders change
paper work including 50K start up capital and full annual general meeting