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What is limited Liability
the most an owner / shareholders can lose is the amount they invested into the business
What is unlimited liability
The owner is responsible for all the debts of the business. The owner must repay all their debts even if that means selling their business along with thei
Private Limited company
A company formed by between 1 and 149 people who combine their resources to start the business with limited liability
What is a sole trader?
A person who owns and runs their own business
What is a franchise
An arrangement where one person is given permission to set up a branch of another person's business in return for a fee/ percentage of their sales
What is a partnership
When between two and 20 people set up a business together
True or false: The owners of a partnership have limited liability
False
What certificate do you receive from the CRO that allows you to begin trading?
Certificate of incorporation
What are Co-Operatives?
Organisations formed by people with a common interest. At least 7 members needed
What are not-for-profit organisations?
Is set up to meet a charitable or social need in the community
Can a 'not-for-profit' organisation have paid employees?
Yes
What are the three types of enterprises that the types of business ownership belong to ?
Financial, Cultural, Social
True or false: An advantage of being a sole trader is that you can keep all the profits?
True
T/F: A franchise has unlimited liability?
False
What document should a partnership write up before doing business?
Deed of Partnership
