Study

Business Organisations

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