1.4 Types of business organisation online test

1. Shared Responsibility: Partnerships distribute workload and resources among multiple individuals.
2. Diverse Skills: Partners bring varied expertise and perspectives, enriching business strategies.

This is an example of sole trader?

Private Limited Companies: Entities with limited liability, owned privately by shareholders, limiting shares trade and often catering to smaller operations.

Unincorporated businesses, like sole traders or partnerships, lack a separate legal status from their owners and offer no limited liability. Owners are personally liable for debts.

Disadvantages of sole traders are:

Unlimited Liability: Personal assets are at risk as there’s no legal separation between business and owner.
Limited Resources: Sole traders may face limitations in raising capital or resources compared to larger entities.

Advantages of Public Limited Companies are?

1. Access to Capital Markets: Ability to raise substantial funds from the public by selling shares.
2. Growth Potential: Broader ownership can attract larger investments for expansion.

Individuals running businesses alone, having full control and responsibility for profits and liabilities, often found in small enterprises. is Sole Traders

Franchises: Collaborative partnerships between two or more entities to pursue a specific project or venture, sharing risks, resources, and profits temporarily.

Public Limited Companies: Companies with publicly traded shares, allowing for raising capital from the public, subject to stringent regulations and broader ownership.