Sole Trader
Owned by one person.
What is a sole trader?
Two or more owners.
What is a partnership?
Owned by shareholders.
What is an LTD?
Uses another company’s brand.
What is a franchise?
Something the business owns.
What is an asset?
Owner pays all debts.
What is unlimited liability?
All partners responsible for debts.
What is unlimited liability?
Owners only lose what they invest.
What is limited liability?
Often has limited liability.
What type of liability a franchisee have?
Something the business owes.
What is a liability?
Keeps all profit.
What is an advantage of a sole trader?
Shared skills and workload.
Shared skills and workload?
Shares are not sold to public.
What are private shares?
Brand already known.
What is an advantage of a franchise?
A business van.
What is an asset?
Makes all decisions.
What is full control?
Profits must be shared.
What is shared profits?
Owners may get dividends.
What do shareholders receive?
Must pay fees.
What is a disadvantage of a franchise?
A bank loan.
What is a liability?
Takes all the risk.
What is a drawback of being a sole trader?
One partner’s mistake affects all.
What is unlimited liability in a partnership?
Lower financial risk.
What advantage have LTD?
Franchiser gives support.
What does the franchiser provide?
Controlling debts helps the business.
Why manage liabilities?