Entrepreneurs have many responsibilities. They need to be innovators, risk takers, decision makers and have unlimited liability.
Being a sole trader can have many burdens, however there are advantages. Which one of these benefits the sole trader? You may pick one or more.
Have limited liability
Simple to set up - no legal requirements
Can offer personal service
Can exploit economies of scale
May qualify for government help
Name three disadvantages of having a Partnership.
Financial information is not made public
Partners have unlimited liability.
Tend to be small businesses
No continuity
Profit is shared
In limited Partnerships both partners have limited liability
Which of these are advantages to the franchisee? Pick one or more.
Cost of support may be high
Set-up costs are predictable
Back-up support is given
Fast method of growth
Strict contracts have to be signed
Which describes best an incorporated business?
businesses where there is no legal difference between the owner and the business
Where the business has separate legal identity from that of its owners
Which of these are disadvantages to the franchisor? Pick one or more.
potential profit is shared with franchisee
Can be an expensive way to start a business
Poor franchisees may damage the brand’d reputation
Franchisees take most of the risk
Partnerships are strictly between 2 and 20 people
A franchisor is the owner who allows franchisees to operate under their name
Sole traders, partnerships and franchises all have limited liability.
