1.2 Business ownership

• What is a partnership?

  A business owned by two or more people
• A public limited company (PLC) can be traded on a stock exchange
• What type of liability do partners in a partnership share?

  Unlimited personal liability
• A disadvantage of a private limited company (Ltd) is higher setup costs
• What type of liability does a Private Limited Company (Ltd) provide for its shareholders?

  Limited liability
• Match the advantage of business ownership with its corresponding type:

  Simple and easy to set up ↔️ Sole Trader

  Increased access to capital ↔️ Partnership

  Limited liability ↔️ Private Limited Company (Ltd)
• Dissolving a partnership can be difficult.


  True
• Public Limited Companies (PLCs) can raise capital by selling shares on the stock market.


  True
• Partnerships have unlimited personal liability for their owners.


  True
• What is the most complex and expensive business ownership structure to establish and operate?

  Public Limited Company
• What is a major disadvantage of a sole trader structure?

  Unlimited personal liability
• Business ownership refers to the legal structure under which a business operates
• A sole trader has limited access to capital compared to a PLC


  True
• What is a key characteristic of a Private Limited Company (Ltd)?

  Limited liability for shareholders
• A Public Limited Company (PLC) is more expensive to set up and operate
• The choice of business ownership structure depends on factors like liability, control, access to finance, and perception.

  True
• A sole trader is a business owned and controlled by one individual
• A private limited company (Ltd) can be publicly traded on a stock exchange.

  False
• A sole trader has unlimited personal liability.


  True
• A partnership is a business owned by two or more people
• What is the key feature of a private limited company (Ltd) regarding shares?

  Shares cannot be publicly traded
• A Public Limited Company (PLC) is owned by shareholders
• A sole trader is responsible for all profits and losses of the business.

  True
• A key disadvantage of a partnership is unlimited personal liability
• Why do shareholders in a Private Limited Company (Ltd) have limited liability?

  To protect personal assets
• What is the main disadvantage of a sole trader in terms of liability?

  Unlimited personal liability
• Match the business ownership structure with its key characteristic:

  Sole Trader ↔️ Full control and simplicity

  Private Limited Company (Ltd) ↔️ Limited liability and shares

  Public Limited Company (PLC) ↔️ Publicly traded shares
• Match the type of business ownership with its key advantage:

  Sole Trader ↔️ Simple and easy to set up

  Partnership ↔️ Shared skills and expertise

  Private Limited Company (Ltd) ↔️ Limited liability for shareholders

  Public Limited Company (PLC) ↔️ Ability to raise large capital
• What is a key advantage of a Public Limited Company (PLC)?

  Ability to raise large capital
• What is the primary responsibility of a sole trader?

  All profits and losses
• In a partnership, partners share unlimited personal liability
• What is the key difference between an Ltd and a PLC?

  Shares can be publicly traded
• Match the type of business ownership with its key difference:

  Sole Trader ↔️ Unlimited personal liability

  Partnership ↔️ Shared skills and resources

  Private Limited Company (Ltd) ↔️ Limited liability, shares not publicly traded

  Public Limited Company (PLC) ↔️ Ability to raise large capital
• Rank the business ownership structures from least to most complex:

  1️⃣ Sole Trader

  2️⃣ Partnership

  3️⃣ Private Limited Company (Ltd)

  4️⃣ Public Limited Company (PLC)
• Match the business ownership type with its legal requirement:

  Sole Trader ↔️ No requirement to register

  Partnership ↔️ Registration with HMRC

  Private Limited Company (Ltd) ↔️ Formal registration with Companies House

  Public Limited Company (PLC) ↔️ Stock exchange listing process
• Match the business ownership type with its case study example:

  Sole Trader ↔️ Mary's Bakery

  Partnership ↔️ Smith & Jones Architects

  Private Limited Company (Ltd) ↔️ Green Tech Ltd

  Public Limited Company (PLC) ↔️ Global Pharmaceuticals PLC
• What does business ownership refer to?

  Legal structure and ownership
• What factors influence the choice of business ownership structure?

  Liability, control, finance, taxation
• What is a disadvantage of being a sole trader in terms of capital access?

  Limited access to capital
• Order the stages of deciding on a business ownership structure based on key factors:

  1️⃣ Assess liability requirements

  2️⃣ Evaluate capital access needs

  3️⃣ Determine desired level of control

  4️⃣ Consider tax implications