Private Sector Flashcards
1
Q
What is a sole trader
A
A business that is owned and managed by one person
2
Q
What is a partnership
A
A business that’s owned by 2-20 people
3
Q
What is a limited company
A
A business that is owned by private shareholders. This means that people are invited to become part of the company
4
Q
What are 2 advantages of a sole trader
A
- They don’t need to consult other people about decisions
- The owner keeps all the profits
5
Q
What are 2 disadvantages of a sole trader
A
- Unlimited liability
- Long working hours with few holidays
6
Q
What are 2 advantages of a partnership
A
- More money can be invested in the business
- Workload is shared
7
Q
What are 2 disadvantages of a partnership
A
- Unlimited liability
- Profits have to be shared amongst the partners
8
Q
What are 2 advantages of a limited company
A
- Limited liability
- Lots more finance can be raised from the shareholders
9
Q
What are 2 disadvantages of a limited company
A
- Profit is shared between the shareholders
- Shares can’t be sold to the public
