F291 Legal Identities quiz 3.0 / 5 based on 1 rating ? Business StudiesASOCR Created by: Daisy JudgesCreated on: 04-01-13 12:06 Does a sole trader have limited or unlimited liability? Unlimited - they are personally responsible for any debts 1 of 21 Give 2 advantages of operating as a sole trader You can choose your hours of work and offer a service at a personal level 2 of 21 Give a disadvantage as operating as a sole trader Potential for long hours 3 of 21 Is a partnership limited or unlimited liablility? Unlimited - the partners and staff are personally responsible 4 of 21 How many owners are there in a partnership? Between 2 and 20 5 of 21 What legal act must a partnership follow? Partnership Act set up in 1890 6 of 21 What is an advantage of operating as a partnership? Don't need to publish accounts 7 of 21 What are disadvantages of operating as a partnership? As there are more owners, money is split so you receive a smaller amount and there is sometimes conflict with partners 8 of 21 How many owners does a Franchise have? 1 or more 9 of 21 Is a Franchisees liability limited or unlimited? Limited - the franchiser holds some responsibility 10 of 21 What is an advantage for the Franchiser of operating as a franchise? It is an easy and lazy way for the business to expand 11 of 21 What is an advantage for the Franchisee of starting up a franchise? Training is provided, as is the building and equipment needed 12 of 21 What is a disadvantage for the Franchiser of operating as a franchise? Without close control the franchises can give brand a bad reputation 13 of 21 What are disadvantages for the Franchisee of starting up a franchise? Initial costs of buying is expensive, also restrictions on how to run the business and selling must be approved by Franchiser first 14 of 21 How many owners does a Public Limited Company (PLC) have? 2 or more 15 of 21 What is the liability of a PLC? Limited 16 of 21 What is an advantage of operating as a PLC? Money can be raised by selling shares as they can list on the stock market 17 of 21 What are disadvantages of operating as a PLC? Less personal service, setting up costs of £50 000 and accounts are public 18 of 21 An advantage of operating as a LTD is that control cannot be lost. Why is this? Shares are not sold on the stock market, they have to be confirmed by all share holders meaning shareholders cannot win the majority of voting rights 19 of 21 What is the liability of a LTD? Limited 20 of 21 What are disadvantages of operating as a LTD? Takes time to find people to buy shares and financial information is accessible by public 21 of 21
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