Sole Proprietors
The main feature of sole proprietorship.
What is owned by one person?
Is partnership more high risk than sole proprietorship. True or False
What is False?
The definition of a sole Proprietor.
What is a business that is owned and controlled by one person?
The main feature of partnership.
What is owned by a minimum of 2 owners and a maximum of 20 owners?
Partnership take longer to make decisions this is because what reason.
What is partnership take longer to make decisions because the decisions and choices must be discussed between all the business owners?
One example of a business of sole propietors.
What is hairdresser, fish and chip shop?
Define the partnership of a business.
What is a business owned by two or more people?
One example of a business of partnership.
What is a dentist or doctor?
There advantages of sole proprietorship.
What is owner has full control, easy to set up and small start up cost, profits are kept by the owners, flexibility, minimal financial accounts, no conflicts of interest?
The meaning of limited liability.
What is a person's financial liability is limited to a fixed sum, the value of a person's investment in a company or partnership. If company is sued, then the claimants are suing the company, not its owners or investors?
Three advantages of partnership.
What is more specialist skill, easier to raise finance, easy to set up, shared responsibility covering holidays and illness, financial information is confidential, some partners have the opportunity to not be involved in the running of the business- silent partners?
The meaning of limited liability.
What is legal obligations general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities
Four disadvantages of sole proprietorship.
What is difficulties in raising finance, slow growth due to limited capital and labour, high risks, lack of continuity, shortage of skills and unlimited liability.
Four disadvantages of partnership.
What is unlimited liability, profits has to be shared amongst the partners, conflict of interest, shortage of capital- restricted to the existing partners introducing more capital into the business and longer decision making?
Sole proprietors have separate legal existence from their owner. True or False
What False?
Is sole proprietorship limited liability or is partnership limited liability.
What is neither one of them they are both unlimited liability?
Define limited partnership.
What is the law now allows partnerships to operate as limited liability partnerships. Many solicitors are choosing to operate this type of business organization.
Partnership have deed of partnership. True or False
What is True?
One thing in a deed of partnership agreement.
What is who provides the capital, control of the business, distribution of profits, settling disputes and deciding on the value of the business.