5.1 Appropriate forms of ownership for start-ups - Word Drop

A ______ is a single person who owns and runs an enterprise. They make every decision alone and keep all the profits. However, they have ______, so their personal money must pay business debts if the enterprise fails. It is cheap and quick to set up, but the owner may lack the skills to succeed.

In a partnership, two or more owners share the profits and the workload. Each partner helps to make key ______, but each is personally liable for the enterprise's debts with no limit. A limited liability partnership is different, as each partner is only liable for the amount they have ______. The business is also a separate ______ from its owners.

A private limited company has ______ after its name. Its owners have limited liability, so their personal assets are protected if the business fails. It can raise finance by selling ______. Control is then shared between shareholders and the accounts must be made public.

A ______ is a licence to sell the products of an established brand using its name and equipment. The franchisee pays a start-up fee and an ongoing ______, which is a percentage of sales. Some decision-making stays with the franchisor. In every form of ownership, profit is divided between the legal owners using an agreed ______.