1.4.1 Start-up and small business options - Word Drop

Liability is about who pays a business's debts. A sole trader has ______ liability, so the owner is fully responsible for all business debts. A private limited company has limited liability, so its owners risk only the money they invested.

A ______ is a business owned and controlled by one person. This owner keeps all the ______ that the business makes but has unlimited liability. A ______ is a business owned by two or more people. Partners share the profits and can raise more ______ from new partners, but each partner is usually fully liable for the business's debts.

A private limited company is owned by ______. It has limited liability and can raise finance by selling shares. Profits are often paid to owners as ______. However, the company must follow more legal rules.

A franchise allows an entrepreneur to buy the rights to use an existing business model. The ______ is the person who buys the right to trade under the brand. This gives the benefit of an established ______ and ongoing ______. However, the franchisee must pay ______ and has less control.