T1: Forms Of Business

Question 1

Sole Trader

Answer 1

Single person owns the business. UNLIMITED LIABILITY

Question 2

Partnership

Answer 2

Business is owned by 2 or more people. UNLIMITED LIABILITY

Question 3

Unlimited Liability

Answer 3

The owners of the business are responsible for all of the debts of a business should it fail.

Question 4

Private Limited Company ( LTD )

Answer 4

A company that is privately owned, usually by family & is limited by shares

Question 5

Franchising

Answer 5

Using a franchisers business idea, various services and methods in return for a variety of fees.

Question 6

Social Enterprise

Answer 6

A business that trades for a social and/ or environmental purpose.

Question 7

Lifestyle business

Answer 7

Primary aim is to sustain a particular level of income for the entrepreneur

Question 8

Online business

Answer 8

E-commerce. Trading in products or services using the Internet

Question 9

Public Limited Company ( PLC )

Answer 9

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Question 10

Stock market floatation

Answer 10

The process of becoming a public limited company

Question 11

What is a business?

Answer 11

An organisation that provides a product or service