Business Ownership (ETR1063)

What type of business ownership is best for an individual with a small amount of capital?

• Sole Proprietorship

• Public Limited Company

• Private Limited Company

• Partnership

In a sole proprietorship, who is liable for the business debts?

• The owner

• The creditors

• The shareholders

• The company

What is a key advantage of a private limited company?

• Easy to dissolve

• Unlimited liability

• Perpetual life

• Full control by one owner

Which of the following is NOT a type of business ownership mentioned?

• Partnership

• Franchise

• Public Limited Company

• Sole Proprietorship

What is a disadvantage of a sole proprietorship?

• Limited source of capital

• Unlimited liability

• Easy to manage

• Flexibility in operation

In a partnership, how is the business risk typically managed?

• It is absorbed by the company

• It is shared among all partners

• It is borne by one partner

• It is transferred to creditors

What is a characteristic of a public limited company?

• Limited to 50 shareholders

• Can sell shares to the public

• No legal obligations

• Owned by a single individual

What is a major disadvantage of franchising?

• No need for a business plan

• Limited marketing support

• Complete freedom in management

• High initial investment

Which of the following is an advantage of a partnership?

• Difficult to set up

• Pooling of skills and resources

• High taxation

• Unlimited liability

What is a key factor to consider when starting a new business?

• Personal interests

• Popularity of the business

• Government regulations

• Location of business