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Questions and Answers
Which type of business is owned and operated by members who pool their resources for mutual benefit?
Which type of business is owned and operated by members who pool their resources for mutual benefit?
- Cooperatives (correct)
- Sole Trader
- Partnership
- General partners
Which business type has a single owner who makes all decisions and takes all profits?
Which business type has a single owner who makes all decisions and takes all profits?
- Electricians
- Limited liability partners
- Sole Trader (correct)
- Partnership
In which type of business are the risks shared among 2-20 individuals?
In which type of business are the risks shared among 2-20 individuals?
- Limited liability partners
- Gardeners
- Partnership (correct)
- Producer cooperatives
Which type of partner has limited personal liability in a partnership?
Which type of partner has limited personal liability in a partnership?
What is a common example of a sole trader business?
What is a common example of a sole trader business?
A sole trader has limited personal liability.
A sole trader has limited personal liability.
Partnerships can have up to 50 individuals involved.
Partnerships can have up to 50 individuals involved.
Cooperatives are solely focused on financial services.
Cooperatives are solely focused on financial services.
In a partnership, all partners are equally involved in decision-making.
In a partnership, all partners are equally involved in decision-making.
Sole traders typically have more limited capital compared to partnerships.
Sole traders typically have more limited capital compared to partnerships.
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Study Notes
Business Ownership
- A sole trader is a single business owner who makes all decisions and takes all profits.
- Sole traders have limited capital and personal liability, meaning their personal assets are at risk in case of business failure.
- Examples of sole traders include electricians, gardeners, and plumbers.
Partnership
- A partnership is a business formed by 2-20 individuals who share capital, workload, and risks.
- There are three types of partners in a partnership: general partners, sleeping partners, and limited liability partners.
- Each partner has a role in decision-making and profit-sharing.
Cooperatives
- A cooperative is a business owned and operated by its members who pool resources for mutual benefit.
- There are five types of cooperatives: consumer, producer, financial, services, and workers cooperatives.
- Cooperatives aim to provide benefits to their members, such as better prices, improved services, or enhanced working conditions.
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