Quiz To Test Your Knowledge Of Business Ownership!

Subway is a franchise because it is a well-known fast-food chain that operates through a franchise model. This means that individuals can purchase a franchise from Subway and operate their own Subway restaurant while following the company's established guidelines and using its brand name. This allows Subway to expand its business through independent owners who pay fees and royalties to the company in exchange for the right to operate under the Subway brand.

A partnership is a business structure where two or more individuals come together to carry out a business venture. The maximum number of people that can be involved in a partnership is typically limited to 20. This limitation ensures that the partnership remains manageable and allows for effective decision-making and coordination among the partners. Having too many partners can lead to complications and difficulties in running the business smoothly. Therefore, the correct answer is 1-20.

'Matthew & Bragg Solicitors' is likely to come under the form of ownership known as Partnership. A partnership is a business structure in which two or more individuals share ownership, responsibilities, and profits of the business. In this case, Matthew and Bragg are likely to be the partners of the solicitors' firm, indicating a partnership form of ownership.

Unlimited liability refers to a situation where the owners of a firm are personally responsible for the company's debts and may have to use their personal assets to pay off the debts. This means that if the firm cannot meet its financial obligations, the owners can be held personally liable and may have to bear the financial burden by using their own money. This is in contrast to limited liability, where the owners' liability is limited to the amount they have invested in the company.

A sole trader has unlimited liability, meaning that the owner is personally responsible for all debts and liabilities of the business. This means that if the business fails or incurs significant debts, the owner's personal assets can be used to settle those debts. In contrast, charities, private limited companies (ltd), and public limited companies have limited liability, where the owners' personal assets are protected and only the assets of the business are at risk.

Limited liability is beneficial for a company because it ensures that the owners or shareholders are not personally responsible for the company's debts. If the company goes bankrupt or faces financial difficulties, the owners' personal assets are protected, and they are not required to repay the debts from their own pockets. This provides a sense of security and reduces the financial risk for the owners, encouraging investment and entrepreneurship.

Sole traders are successful because they have the ability to offer a personalised, specialist service that caters to the specific needs and preferences of their customers. As a sole trader, they have the freedom to tailor their products or services to meet individual customer requirements, providing a unique and customized experience. This level of personalization and specialization often leads to increased customer satisfaction and loyalty, ultimately contributing to the success of the sole trader.

Franchising offers numerous benefits, such as the ability to benefit from national advertising, start a business with reduced risk, and leverage the reputation of the franchise. However, one drawback of franchising is that franchisees must adhere to the rules and standards set by the franchise. This lack of flexibility restricts their ability to make independent decisions and operate the business according to their own preferences.