Sole Trader
This term describes a business owned and controlled by one person.
What is a sole trader?
In a partnership, the business is owned by how many partners?
What is 2–20 partners?
Shareholders of an LTD benefit from this type of liability protection.
What is limited liability?
A PLC can raise large amounts of this because it has unlimited shareholders.
What is capital?
A franchisee must pay this percentage of their sales to the franchisor regularly.
What are royalties?
One major advantage of being a sole trader is the owner keeps all of this.
What are profits?
An advantage of partnerships is that work is divided, leading to less of this for each partner.
What is stress/overwork?
An LTD has this type of legal status, meaning it continues even after a shareholder's death.
What is a separate legal entity?
One major advantage of a PLC is that it has this high reputation, making it easier to get loans.
What is prestige/status?
This is the businessperson who leases the right to use a company’s name and logo.
Who is the franchisee?
A disadvantage of a sole trader is that they do not have this type of liability protection.
What is limited liability?
Partnerships do not have limited liability. This means partners are responsible for paying this if the business fails.
What are debts?
To start an LTD, owners must complete a lot of this.
What is legal paperwork?
Selling shares in a PLC is a very expensive process due to these costs.
What are underwriting/administrative fees?
The franchisor benefits from faster expansion because this person pays for it.
Who is the franchisee?
Because a sole trader is a small business, it often struggles with raising this for expansion.
What is capital?
The death of a partner often results in this, requiring a reorganization of the business.
What is the dissolution of the partnership?
In an LTD, this group is responsible for overseeing the company’s activities.
What is the board of directors?
A disadvantage of a PLC is that the original owners may lose this if other shareholders vote against them.
What is control of the company?
Franchisees benefit from reduced risk because the franchisor takes care of this type of business promotion.
What is advertising?
This is the main reason a sole trader can respond quickly to changes in consumer demand.
What is full control over decision-making?
One risk of a partnership is that a partner may have these negative characteristics, like being lazy or dishonest.
What are inefficient/undesirable partners?
This disadvantage of an LTD means that financial reports must be made available to the public.
What is financial disclosure?
The financial accounts of a PLC must be disclosed to this group.
What is the public?
This is the fee a franchisee must pay to enter into a franchise agreement.
What is the franchise fee?