4th Forms of Business

A business with one owner is known as a:

• Company

• Sole trader

• Partnership

A business run by 2-20 people and has unlimited liability is known as a:

• Company

• Sole trader

• Partnership

The two forms of business ownership with unlimited liability are:

• Sole trader

• Public company

• Partnership

• Private company

Advantages of a sole trader are:

• Limited liability

• The owner makes all the decisions

• The owner takes all the profit

• Can raise substantial capital

Advantages of a partnership are:

• The partners split the profit

• Unlimited liability

• Raise more capital than a sole trader

• Share the workload

What is the most common form of business ownership?

• Corporation
• Company
• Sole Proprietorship
• LLC

McDonald's and Burger King are examples of....

• Sole Proprietorships
• Partnerships
• Corporations
• Franchises

Disadvantages of this business type include: needs a partnership agreement, partners might not get along, owners share profits, unlimited liability.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

Advantage: Start-up cost are low

• Sole Proprietorship

• Partnership

• Franchising

• Entrepreneurship

Who is a franchisor?

• A person who sells a franchise
• A person who makes franchises
• A person who buys a franchise
• A person who destroys franchises