Business Ownership

Question 0

What’s is the main difference between a plc and an ltd?

Answer 0

An ltd’s owners are the shareholders with their family and friends
Whereas in a plc’s is the general public on the stock market

Question 1

How many owners are there in

a) a sole trader?
b) a partnership?
c) a private limited company?
d) a public limited company?

Answer 1

a) 1
b) 2-20
c) a few
d) lots

Question 2

What type of liability do

a) sole traders and partnerships have?
b) ltd’s and plc’s have?

Answer 2

a) unlimited

b) limited

Question 3

Define limited liability

Answer 3

When only the money invested into the business can be lost if the business fails rather than losing everything until the debt is payed off

Question 4

Name some benefits to being a sole trader

Answer 4

• complete control
• keep all profits
• easy and cheap to set up
• finical information is private

Question 5

Name so disadvantages of a sole trader

Answer 5

• unlimited liability
• hard to find funds
• if owners ill no one wake may be able to run the business
• long hours
• if the business owner dies then the business may cease if no one inherits it
• if the business owner wants to sell then it may be hard to find someone to buy it so will have to cease
• some owners may not have the necessary skills
• no benefit from economy of scale

Question 6

Name some internal stakeholders

Answer 6

• employees
• sometimes shareholders
• owner
• management

Question 7

Name some external stakeholders

Answer 7

• customers/ consumers
• supplier
• sometimes shareholders
• competition
• investors
• local businesses
• local community
• pressure groups
• trade unions
• local government
• national government

Question 8

Define stakeholder

Answer 8

Any person or group of people who are interested in the activities of a particular business