Unit 1

Question 1

2 advantages of a sole trader

Answer 1

Few legal requirements

No shared profit

Question 2

2 disadvantages of having a partnership

Answer 2

Conflict can arise due to disagreements

Partners have unlimited liability

Question 3

2 disadvantages of being a sole trader

Answer 3

Unlimited liability

May have to work long hours

Question 4

What is a Ltd

Answer 4

Private limited company

Shares in the business can be sold to raise finance

Question 5

2 advantages and 2 disadvantages of Ltd

Answer 5

Separate legal entity making it have limited liability
Shares can be sold to raise finance

Shares cannot be sold to the general public which limits finance
Expensive and lengthy process

Question 6

What is a PLC

Answer 6

Public limited company

Shares can be bought and sold via the stock market

Question 7

Business objectives

Answer 7

Survive
Financial
Growth
Reputation

Question 8

What is a pressure group

Answer 8

A group that tries to influence a business’ operations to become more ethical