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5.1 Appropriate forms of ownership for start-ups - Match-up

Match-up definitions and answers with key terms and examples. Press submit to check your answers.

Sole trader
Unlimited liability
Partnership
Limited liability partnership
Private limited company
Shares and dividends
Franchise
Franchise royalties
Franchisor control
Limited liability
Franchisor
Shareholder
Dividend
Unlimited liability
Franchise
Private limited company
Partnership
Sole trader


Answers
Business owned by two or more people sharing profits, losses, and decisions
Business licensed to use an established brand, systems, and products
Owned by two or more people sharing profits, decisions, and responsibilities
Company legally separate from owners; owners' liability limited to investment
Franchisor sets key rules and limits franchisee independence and decisions
Share of company profit distributed to shareholders proportionate to shares
Owner of brand who grants rights and provides support to franchisees
Separate legal entity where partners’ losses limited to their invested capital
Ongoing fees paid to franchisor, often calculated as percentage of revenue
Owned and run by one person who keeps all profits and control
Ltd sells shares to raise finance; shareholders receive dividends from profits
Individual or entity owning company shares and receiving dividends sometimes
Owner personally responsible for all business debts and financial obligations
Owners' financial responsibility capped to invested capital or share value
Separate legal entity with owners' liability limited and shares issued
Single owner business where owner has full control and responsibility
Owners personally responsible for all business debts without financial limit
Business model allowing franchisees to trade under an established brand for fees
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