Business Structures: Advantages and Disadvantages Flashcard

Front

Which of the following is an advantage of being a sole trader?

• Limited liability
• Shared responsibilities
• Independence
• Shares can be traded on the Stock Exchange

Back

Independence

Front

What is a disadvantage of a partnership?

Back

Possible disagreements between partners

Front

Which business structure provides limited liability and access to extra funds for expansion?

Back

Private limited company

Front

What is a disadvantage of a public limited company (plc)?

Back

Sometimes slow to react to opportunities

Front

Which of the following is NOT an advantage of a partnership?

• Easy to set up
• Skills and experience of partners
• Limited liability
• Shared responsibilities

Back

Limited liability

Front

What is a key characteristic of not-for-profit organisations?

Back

Profits are reinvested to achieve organisational objectives

Front

A private limited company must be registered with which of the following? Stock Exchange, Companies House, Local Council, Chamber of Commerce

Back

Companies House

Front

Which business structure allows shares to be traded on the Stock Exchange?

Back

Public limited company

Front

Why might a business choose to become a private limited company rather than remain a partnership?

Back

To have limited liability and reduced personal risk

Front

Example of a not-for-profit form of ownership: Sole trader, Public limited company, Charity, Partnership

Back

Charity