Solo & Duo
An individual who owns and runs a business alone, with no legal separation between them and the business.
What is a sole trader?
The owners of a company are called this because each one owns a "share" of the business.
Who are shareholders?
This chocolate brand from MrBeast is a privately held company.
What is Feastables?
An organisation that reinvests all of its surplus into its mission instead of paying it out to owners.
What is a non profit?
A creator runs a channel and sells merch with no legal paperwork, keeping all profits.
What is a sole trader?
If a sole trader's business can't pay its debts, this type of liability means their personal possessions, even their home, can be seized.
What is unlimited liability?
This protection means shareholders can only lose the money they invested, and their personal assets are safe.
What is limited liability?
In 2019, this publicly traded beauty giant bought 51% of Kylie Cosmetics for $600 million.
What is Coty?
MrBeast's registered 501(c)(3) charity donates 100% of its channel revenue to causes like food banks.
What is Beast Philanthropy?
Two creators launch a merch line under a written agreement and split profits 50/50.
What is a partnership?
This document between business partners sets out each person's investment, how profits are shared, their roles, and what happens if someone leaves.
What is a partnership agreement?
Unlike a public company, a private company's shares are NOT sold to the public or traded here.
What is a stock exchange?
Kylie Jenner kept creative direction after the deal, but by selling 51% she gave up this.
What is majority (controlling) ownership?
This certification is the best-known way for a for-profit business to prove its social and environmental credentials.
What is B Corp?
A creator's brand is sued over a faulty product, but their personal home is safe because the brand is a separate legal entity.
What is a private company (limited liability)?
Compared with a sole trader, a partnership finds it easier to do this, but harder to do this quickly.
What is making decisions?
This three-letter term describes a private company selling its shares to the public for the first time.
What is an IPO?
In Prime Hydration's reported ownership split, this company holds the controlling 60% stake, even though KSI and Logan Paul are the faces of the brand.
What is Congo Brands?
Marketing your brand as ethical without actually changing how it operates is called this.
What is social washing?
A brand claims to be sustainable but changes nothing about its supply chain — name what critics would call this.
What is greenwashing?
A solo creator gets banned from their platform and burns out. This sole trader weakness explains why the business may simply stop existing.
What is a lack of continuity?
Publishing your financial accounts for competitors to see and risking a takeover are both consequences of becoming this type of company.
What is a Publicly Traded Company?
Congo Brands' 60% stake in Prime Hydration gives it this, even though KSI and Logan Paul are the public face of the brand.
What is controlling interest (majority ownership)?
This is what separates a genuine for-profit social enterprise from social washing — not what a brand says, but this.
What is its business model (how it actually operates)?
An outside investor buys the largest share in a creator's public company and can now overrule the founder. Name this disadvantage.
What is loss of control (takeover risk)?