advantages and disadvantages

Question 1

What is one advantage of a sole trader business structure?

Answer 1

Complete control over the business.

Question 2

True or False: Limited liability is a disadvantage of a limited company.

Answer 2

False.

Question 3

What is a disadvantage of being a partnership?

Answer 3

Shared profits among partners.

Question 4

Fill in the blank: A disadvantage of a sole trader is _____ liability.

Answer 4

unlimited.

Question 5

What is one advantage of a public limited company (PLC)?

Answer 5

Ability to raise capital by selling shares to the public.

Question 6

True or False: Partnerships require a formal agreement to operate.

Answer 6

True.

Question 7

What is a key disadvantage of being a franchisee?

Answer 7

Limited control over business operations.

Question 8

What is an advantage of a private limited company (Ltd)?

Answer 8

Shareholders have limited liability.

Question 9

Fill in the blank: A disadvantage of a PLC is that it is _____ to take over.

Answer 9

vulnerable.

Question 10

What type of business is easy to set up and has minimal regulations?

Answer 10

Sole trader.

Question 11

True or False: A disadvantage of a partnership is that partners may disagree.

Answer 11

True.

Question 12

What is an advantage of limited liability?

Answer 12

Personal assets are protected from business debts.

Question 13

What is a disadvantage of being a franchisee?

Answer 13

Ongoing fees and royalties must be paid to the franchisor.

Question 14

Fill in the blank: A benefit of being a private limited company is that it can raise _____ privately.

Answer 14

capital.

Question 15

What is one advantage of partnerships?

Answer 15

Shared responsibilities and skills.

Question 16

True or False: Sole traders can easily transfer ownership.

Answer 16

False.

Question 17

What is a disadvantage of a public limited company in terms of control?

Answer 17

Risk of hostile takeovers.

Question 18

What is one advantage of having a franchise?

Answer 18

Established brand recognition.

Question 19

Fill in the blank: A disadvantage of a sole trader is that they may find it hard to _____.

Answer 19

raise finance.

Question 20

What is an advantage of a limited company regarding taxation?

Answer 20

Lower corporate tax rates compared to personal income tax.

Question 21

True or False: Franchisees have complete control over their business operations.

Answer 21

False.

Question 22

What is a key disadvantage of a partnership when it comes to decision making?

Answer 22

Decisions may require consensus, leading to delays.

Question 23

What is one advantage of being a sole trader in terms of profits?

Answer 23

All profits go to the owner.

Question 24

Fill in the blank: A disadvantage of being a PLC is the requirement for _____ disclosure.

Answer 24

financial.

Question 25

What is a common advantage of starting a franchise?

Answer 25

Access to training and support from the franchisor.

Question 26

True or False: Limited companies are subject to more regulations than sole traders.

Answer 26

True.

Question 27

What is a disadvantage of a sole trader in terms of workload?

Answer 27

The owner bears all the responsibility and workload.

Question 28

What is one advantage of a partnership regarding skills?

Answer 28

Combining diverse skills and expertise.

Question 29

Fill in the blank: A disadvantage of PLCs is that they must publish their _____.

Answer 29

accounts.

Question 30

What is one advantage of a limited company related to investment?

Answer 30

Easier to attract investors.

Question 31

True or False: Sole traders are required to register with Companies House.

Answer 31

False.

Question 32

What is a disadvantage of partnerships in terms of liability?

Answer 32

Partners are jointly liable for debts.

Question 33

Fill in the blank: A disadvantage of being a franchisee is limited _____ in their business decisions.

Answer 33

freedom.

Question 34

What is one advantage of being a public limited company?

Answer 34

Ability to raise large amounts of capital through share sales.

Question 35

True or False: Franchisees can create their own brand identity.

Answer 35

False.

Question 36

What is a disadvantage of a limited company in terms of formation?

Answer 36

More complex and costly to set up.

Question 37

What is one advantage of a sole trader regarding decision making?

Answer 37

Quick decision-making process.

Question 38

Fill in the blank: A disadvantage of a PLC is the potential for _____ from shareholders.

Answer 38

pressure.

Question 39

What is a key advantage of a partnership in terms of financial resources?

Answer 39

More financial resources available than a sole trader.

Question 40

True or False: Limited companies have a perpetual existence.

Answer 40

True.

Question 41

What is one disadvantage of a franchise for the franchisor?

Answer 41

Loss of control over the franchisee's operations.

Question 42

Fill in the blank: A key advantage of being a limited company is that it can raise _____ by selling shares.

Answer 42

capital.

Question 43

What is one disadvantage of being a sole trader when seeking loans?

Answer 43

Difficulty in obtaining loans due to perceived risk.

Question 44

True or False: Partnerships can be established without a formal agreement.

Answer 44

True.

Question 45

What is a disadvantage of a public limited company regarding market fluctuations?

Answer 45

Share prices can be volatile and affected by market conditions.