Business ownership Flashcards
What is a sole trader?
A sole trader is a business that is owned and controlled by one person although they can employ workers.
What is a partnership?
Partnerships are owned by two or more people and they can have any number of employees.
What is a ‘sleeping partner’?
A sleeping partner is someone who invests in the business but does not have any involvement of the day to day running of the business.
What is a limited company?
The ownership of a limited company is dived up into equal parts which are called shares.
What is a shareholder?
A shareholder is someone who owns one or more shares when running a limited company.
What is a franchise?
A franchise is where the business (the franchise) is allowed to trade under another business name and copy its ideas.
What is a franchiser?
A franchiser is someone who is allowed to trade under another businesses name and copy its ideas. They have to pay a fee to be able to do this.
