Created by ryanculham
almost 10 years ago
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Question | Answer |
What is a Sole Proprietor? | An individual who is the sole owner of a business that is neither a partnership nor a company, owned by one person only. |
What is a Public Limited Company? | Its usually a large, well known business. This could be a manufacturer or a chain of retailers. They usually share trades on the stock exchange. |
What is a Private Limited Company? | A small business such as an independent retailer in a market. Shares are not traded on stock exchange. |
What is the difference between a franchisee and a franchisor? | Franchisee's buy the right from a franchisor and a franchisor sells to the franchisee. |
Explain a partnership. | Partners in a business, they usually have a shared responsibility however, many disputes can arise over decisions made. Partners have unlimited liability. |
What is a sole trader? | They provide a specialist service like hairdressers etc. They have unlimited liability so they have to pay for their debts out of their own pockets. |
How can an owner be guaranteed a place into running the business? | They must be elected to the Board of Directors (BOD) |
Why should you open a franchise? | Its usually 'less risky' than opening a independent retailer as a franchise is well known etc. |
What is a limited company usually called? | They are usually named incorporated which means they have their own legal identity. |
What is the owner of a limited company usually called? | A shareholder, as the company is divided up into equal parts called shares. |
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