LEARNING AIM A

Question 1

Sole Trader

Answer 1

Owned and operated by one person. They will make all decisions and take all of the profits but are responsible for any debts and also have unlimited liability and also have unlimited liability

Question 2

Partnership

Answer 2

A business in which two or more persons combine their assets and skills. They will share any profits but are responsible for any debts

Question 3

Private limited company

Answer 3

Generally smaller businesses organised with shareholders who invest money to buy a share of the company.

Question 4

Public limited company

Answer 4

Tend to be larger businesses with shares offered to general public on stock market

Question 5

Co-operatives

Answer 5

The owner is personally and fully responsible for all losses and debts of the business. There is no limit to the amount of debt they are responsible for

Question 6

Limited liability

Answer 6

A form of business ownership in which the owners are liable only up to the amount of their individual investments.

Question 7

Public-sector businesses

Answer 7

Businesses owned and funded by the government. They are managed by local councils

Question 8

Local authorities

Answer 8

A business run by a local, district, city of borough council, which will have a sports and leisure brief to provide a range of services.