Definition
What is Sole Trader?
A Sole Trader is a business that is owned by one person.
State 1 advantage of a franchisor.
. Gain sales and visibility in new markets
· Benefit from local knowledge
· Benefit from extra earnings which result if a franchisee works harder than a branch manager
_______ Is an example of a sole trader.
Evonce
State 1 disadvantage of a Private Limited Company?
Some are not well managed.
When badly managed, members risk losing their savings.
May find it difficult to raise capital.
A partnership is governed by a Partnership Agreement to regulate duties of each partner
True
What is the definition of a public sector?
A public sector is owned by the government.
State 1 advantages of a private limited company.
1. Shares are bought and sold. Shares are sold to raise capital.
2. The directors and managers run the company
A ________ consist of two and up to 20 persons owning a business together.
Partnership
1 disadvantage of a cooperative
1. If a credit union is badly managed, members risk losing their savings.
2. Co-operatives may find it difficult to raise capital
Partnership is a business owner by saver
False (Corporative)
What does the voluntary sector include?
This includes religious organizations, charities, clubs and non-government organizations.
List 2 advantages of a Sole Trader.
Few paperwork required
Owner is free to make decisions alone
The owner takes all the profit
A ______ owned by shareholders who receive dividends
company
List 2 disadvantages of a local government.
1. Simple tasks may become political, such as hiring garbage collectors.
2. Local officials may not have expert knowledge of how to run public services
3. Rely mainly on central government for finance
4. It is hard to attract professional staff as salaries are usually low
A public sector main feature is to make a profit.
False (private sector)
What is a sleeping partner?
Sleeping Partner is a partner who is willing to introduce capital into the business but may not take an active role in the operations.
State 1 advantage of Public Limited Company.
1. Public companies can raise capital more easily than private companies. There are more potential investors.
2. Shareholders can buy and sell their shares more easily. They can increase their investment or sell part of it if they want to use their capital for other purposes.
3. The market decides the price of a share. It is easier to put a value on a personal shareholding than on the whole company
Credit Unions are example of a _______
Cooperative
List 1 disadvantage of a Company.
There are costs in setting up a company.
Some professionals, such as lawyers, cannot form a company. Businesses offering legal services must operate as a sole trader or partnership.
In a company major decision are made by the Board of Directors
True
What is a franchise?
This is a business, which is licensed (franchisee) to use a brand developed by another company. The franchisor owns the brand.
What are 2 advantages of local government.
1. Voter elected. Often people they know personally
2. Local representatives should be able to understand the problems of their area and how to solve them.
3. Local authorities can ask national government for assistance.
KFC is an example of a _______
Franchise
State 3 disadvantages of a sole trader.
1. The owner responsible for all debts.
2. The owner may be fully responsible for compensation if an employee or customer is injured.
3. The owner may have to pledge land and personal possessions to guarantee debts.
4. When the owner is sick or takes vacation, it may be difficult to find someone to run the business.
The largest government departments are called Ministries
True