business a level

• What is a Sole Trader?


  A business owned and run by one person
• How many individuals are involved in a Partnership?

  Two or more individuals
• What defines a Limited Company?

  A separate legal entity with limited liability
• What are the key differences in liability among Sole Traders, Partnerships, and Limited Companies?

  • Sole Trader: Unlimited liability
  • Partnership: Shared unlimited liability
  • Limited Company: Limited liability
• What is the liability type for a Sole Trader?

  Unlimited liability
• How is liability shared in a Partnership?

  Shared unlimited liability
• What type of liability do shareholders have in a Limited Company?


  Limited liability
• Who makes decisions in a Sole Trader business structure?

  The owner makes all decisions
• Who manages a Limited Company?

  A board of directors manages
• What are the funding sources for a Sole Trader?

  Personal savings and loans
• What is the risk level for a Sole Trader?

  High due to unlimited liability
• What funding sources are available for a Partnership?

  Partner contributions and loans
• What funding sources can a Limited Company access?

  Equity financing and loans
• What is the risk level for a Limited Company?

  Low due to limited liability
• What are the legal responsibilities of a Sole Trader?


  Full legal and management responsibility
• How is legal responsibility shared in a Partnership?

  Shared legal and management responsibility
• What is the legal responsibility of a Limited Company?

  Company as a separate legal entity
• Who manages a Sole Trader's business?

  The owner manages all aspects
• Who controls a Limited Company?

  Shareholders vote on major decisions
• How are profits taxed for a Sole Trader?

  Taxed as personal income
• How are profits taxed in a Partnership?

  Taxed as personal income for each partner
• How are profits taxed in a Limited Company?

  Corporate income tax on company profits
• What is the growth potential for a Sole Trader?

  Limited due to one person's resources
• What is the growth potential for a Partnership?

  Moderate growth with multiple contributors
• How scalable is a Sole Trader business structure?

  Low, often requires changing to a company
• What is the growth potential for a Limited Company?

  High growth through fundraising and expansion
• How scalable is a Partnership?


  Some scalability, but can be hindered by disagreements
• How scalable is a Limited Company?

  High, structured for significant growth
• What are common business objectives?

  Profit, growth, survival, cash flow
• How is profit defined as a business objective?

  Money earned after costs and taxes
• What are the different types of profit?

  Gross, operating, and net profit
• How is gross profit calculated?

  Revenue - cost of goods sold
• How is operating profit calculated?

  Gross profit - operating expenses
• How is net profit calculated?

  Operating profit - taxes
• Why is understanding profit important for businesses?

  It helps determine pricing strategies
• What does business growth mean?

  Increasing size, revenue, or market share
• What are key growth strategies for businesses?

  Expanding markets, new products, improved marketing
• Why is growth crucial for businesses?

  It enhances profitability and market share
• What is a mission statement?

  A concise declaration of a company's core purpose
• What is the primary function of a mission statement?

  It guides decision-making and provides direction