G.10 - Types of Businesses

What is a Sole Trader?

• A business where 2 or more people share ownership

• A business owned by shareholders

• A business that is owned by one individual

What percentage of the profits in sole trader is the owner designated to?

• 75%

• 100%

• 54%

• 0%

Business owned by shareholders is

• Partnership

• Sole trader

• Companies

Over 2 millions people from around the world own shares in American Steel; what type of business is it?

• Sole trader

• Partnership

• Private limited company

• Public limited company

This business is long lasting, extending over several generation of owners; what type of business is it?

• Sole trader

• Partnership

• Companies

This business is legally separate from individual owners, and the owners are not personally responsible for debts and obligations of the business. What type of business is it?

• Sole trader

• Partnership

• Companies

When one owner dies, the business is usually dissolved. What type of business is it?

• Sole Trader

• Partnership

• Companies

• Sole traders and partnerships

Shareholders get paid dividends when this type of business makes money.

• Sole trader

• Partnership

• Private limited companies

• Public limited companies

• Both Public and Private limited companies

Lillian receives all of the profits and is personally responsible of all of the losses of her business; what type of business does she have?

• Sole trader

• Partnership

• Company

What is a disadvantage of partnerships?

• ease of formation
• owners share responsibilities
• limited liability
• possibility of personality conflict