RO67 - 5.1 - Appropriate forms of ownership for start-ups

Which form of business ownership offers limited liability?

• Sole Trader
• Partnership
• Franchise
• Private Limited Company

What is the main disadvantage of being a sole trader?

• Limited control over the business
• High startup costs
• Unlimited liability for debts
• Lack of access to funding

What is a key benefit of joining a franchise?

• Complete control over the business
• Lower startup costs
• Access to an established brand and support system
• Unlimited liability for debts

How does a partnership differ from a sole trader?

• Shared decision-making
• Higher startup costs
• Unlimited liability
• Lack of control

What is one advantage of a private limited company (PLC)?

• Unlimited liability
• Easier access to funding
• Minimal registration requirements
• Complete control by one owner

Why might someone choose to be a sole trader?

• To share decision-making
• To have complete control
• To reduce personal liability
• To access more funding

What is a potential downside of a partnership?

• Unlimited liability
• High setup costs
• Potential for disagreements
• Lack of control

How can a franchisee benefit from the franchisor?

• By having complete control
• By paying no royalties
• By receiving training and support
• By avoiding strict guidelines

What is a key characteristic of a sole trader?

• Shared ownership
• Limited liability
• Complete control
• High startup costs

Why might a business choose to become a private limited company?

• To avoid registration
• To have unlimited liability
• To access funding through investors
• To reduce control by owners