Sole Traders and Partnerships N5

"Features" are...

• ownership, control and objectives

• ownership, control and finance

• control, finance and objectives

• ownership, control and liability

Having to share the profits is an advantage of being in a partnership?

• true

• false

A partnership has limited liability?

• true

• false

Sole traders and partnerships belong in the...

• private sector

• public sector

• third sector

• primary sector

A sole trader is owned by ​ (a)   , whereas a partnership is owned by ​ (b)   . Both a sole trader and a partnership can be finance by ​ (c)  

• one person
• 2-20 partners
• shareholders
• a bank loan
• selling shares

A partnership is owned by ​ (a)   whereas a private limited company is owned by ​ (b)   . A partnership is controlled by ​ (c)   whereas a private limited company is controlled by ​ (d)   .

• 2-20 partners
• shareholders
• the partners
• a board of directors

Are these advantages of being a partnership or a private limited company?

Groups:

(a) Partnership

,

(b) Private Limited Company

• lots of finance can be raised by selling shares

• workload can be shared

• there is limited liability

• different areas of expertise can be brought in

Identify whether the 4 businesses shown are sole traders, partnerships or private limited companies (ltd)...

b

c

a

ltd

sole trader

partnership