1.2 Business ownership

• Business ownership refers to the legal structure under which a business is organized
• A public limited company can raise large capital by selling shares on the stock exchange
• Sole traders have full control over their business decisions.

  True
• Order the types of business ownership by complexity of setup from least to most complex:

  1️⃣ Sole Trader

  2️⃣ Partnership

  3️⃣ Private Limited Company

  4️⃣ Public Limited Company
• In a sole proprietorship, the owner has unlimited personal liability
• Sole proprietors retain all profits generated by their business.


  True
• What is a key advantage of a partnership?

  Shared responsibilities
• A sole trader is a business owned and controlled by one individual, providing full control over decisions
• Match the business ownership type with its disadvantage:

  Sole Trader ↔️ Unlimited liability

  Partnership ↔️ Potential for disagreements

  PLC ↔️ Higher administrative costs

  Ltd ↔️ Complex setup
• What is a sole trader business owned and controlled by?

  One individual
• Match the business type with its characteristic:

  Private Limited Company ↔️ Limited liability, not publicly traded

  Public Limited Company ↔️ Limited liability, publicly traded
• In a partnership, responsibilities are shared among the partners.


  True
• A sole proprietorship involves unlimited liability for the owner.

  True
• Partners in a partnership have unlimited liability.


  True
• What does a franchise arrangement involve?

  Using a proven business model
• What is a franchise in a business arrangement?

  Use of business model for a fee
• Match the advantages and disadvantages to either the franchisor or the franchisee:

  Reduced risk ↔️ Franchisor

  High initial costs ↔️ Franchisee
• Social enterprises use commercial strategies to achieve a social or environmental purpose.


  True
• A credit union is an example of a cooperative.

  True
• Non-profit organizations reinvest surplus funds into their mission.

  True
• The type of business ownership affects factors like liability, finance, and taxation
• A sole trader has unlimited liability for their business debts.


  True
• Public limited companies can raise capital by selling shares on a stock exchange
• Sole traders keep all profits
• Who co-founded Ben & Jerry's, a famous partnership?

  Ben Cohen and Jerry Greenfield
• Order the types of franchises from most to least comprehensive:

  1️⃣ Business Format Franchise

  2️⃣ Product Franchise

  3️⃣ Manufacturing Franchise
• What does business ownership determine?

  Legal structure and ownership
• A sole trader has unlimited liability for their business debts.


  True
• Match the type of business ownership with its definition:

  Sole Trader ↔️ Business owned by one individual

  Partnership ↔️ Business owned by two or more people

  Private Limited Company ↔️ Limited liability, shares not publicly traded
• What is a key advantage of a partnership over a sole tradership?

  More capital available
• Match the type of business ownership with its advantage:

  Sole Trader ↔️ Simple to set up

  Partnership ↔️ Shared responsibilities

  Private Limited Company ↔️ Limited liability

  Public Limited Company ↔️ Easier to raise large capital
• Sole proprietors have unlimited access to capital for expansion.

  False
• Sole proprietors often have limited access to capital
• Match the type of business ownership with its disadvantage:

  Sole Trader ↔️ Unlimited liability

  Partnership ↔️ Potential for disagreements

  Private Limited Company ↔️ Financial information public

  Public Limited Company ↔️ Higher administrative costs
• Partnerships involve shared responsibilities and more available capital compared to sole traders

  True
• Business ownership refers to the legal structure and ownership of a business
• One disadvantage of a sole trader is unlimited liability
• What does business ownership refer to?

  Legal structure of a business
• What is a key advantage of a private limited company (Ltd)?

  Limited liability
• What do partners in a partnership share?

  Profits and losses