1.2 Business ownership

    Cards (58)

    • 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