Business Basics
What do we call a person who owns a business?
Owner / proprietor
How many people own a sole proprietorship?
One person
How many people are needed to start a partnership?
Two or more people
What do we call a person who owns shares in a company?
Shareholder
What do we call a business that allows another person to use its brand and business model?
Franchise
What is the money left after a business pays all its costs?
Profit
What do we call the person who owns and manages this type of business?
Sole proprietor
What do we call the people who own a partnership?
Partners
What is a small unit of ownership in a company called?
Share
What is the one-time payment made to buy the right to open a franchise called?
Initial fee
What do we call the money used to start or run a business?
Capital
Give one advantage of a sole proprietorship.
Easy to start / Full control / Keeps all profits
What is a document that explains the partners' roles and responsibilities called?
Partnership agreement
What type of business is owned and controlled by its members to meet their shared needs?
Cooperative
What is the regular payment a franchisee makes to the franchisor called?
Royalty fee
What is the possibility that a business may lose money called?
Risk
What type of liability does a sole proprietor usually have?
Unlimited liability
Give one reason why partners may have disagreements.
Different opinions about decisions, responsibilities or profit sharing
What is the name of a business arrangement where two or more companies work together on a specific project?
Joint venture
Give one disadvantage of owning a franchise.
Must pay fees / Less independence / Must follow rules / Limited ability to make changes
A shop earns ¥10,000 from sales. Its total costs are ¥7,000. How much profit does it make?
¥3,000
Anna owns a small bakery. She makes all the decisions and keeps all the profits. What type of business does she own?
Sole proprietorship
Chen invests 60% of the money and Li invests 40%. They agree to share profits in the same way. How much profit does each partner receive if the business makes ¥10,000?
Chen: ¥6,000; Li: ¥4,000
A company wants to raise money by selling shares. Its owners want protection from personal responsibility for company debts. Which type of business ownership could it choose?
Corporation
Sarah wants to open a fitness centre. She wants to use a famous brand, receive training and follow a proven business model. Which form of business ownership is most suitable for her? Explain one reason.
Franchising. She can use an established brand and receive training and support.