AQA Business Studies A-Level: Chapter
2 - Understanding different business
forms 2024/2025 Exam Questions and
Answers | 100% Solved
Sole trader - 🧠 ANSWER ✔✔A business that is owned and managed by
one person, but it may employ other people
Advantages of a Sole Trader. - 🧠 ANSWER ✔✔- It's easy to start up and
manage this form of business
- Don't need to register the business with a government agency, or fill in
forms.
- They're their own boss
- They keep the profits made - don't have to be shared.
Disadvantages of a Sole Trader. - 🧠 ANSWER ✔✔- Making all the
decisions can put you under pressure of holding all the responsibilities if
anything goes wrong.
- Hours can be demanding.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
, - Aren't able to afford to take time off for holidays with the risk of losing
customers.
- Difficulties in raising finance to set up and expand their businesses.
- If anything goes wrong, the sole trader has unlimited liability. They can
lose their personal possesions (e.g. house, savings, etc).
Unlimited liability - 🧠 ANSWER ✔✔This occurs when an individual or group
of individuals is personally responsible for all the actions of their business.
With sole traders, there is no distinction in law between the individual and
the business so they could lose their personal assets if the business has
financial problems
A ............. ............ is a business that is owned by its ..................., run by
............... and, most importantly, where the liability of shareholders for the
debts of the company is ......... Limited companies can either be ..............
limited companies or .............. limited companies. - 🧠 ANSWER ✔✔limited
company, shareholders, directors, limited, private, public
Private limited company - 🧠 ANSWER ✔✔A business that is owned by its
shareholders, run by directors and where the liability of shareholders for the
debts of the company is limited.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
2 - Understanding different business
forms 2024/2025 Exam Questions and
Answers | 100% Solved
Sole trader - 🧠 ANSWER ✔✔A business that is owned and managed by
one person, but it may employ other people
Advantages of a Sole Trader. - 🧠 ANSWER ✔✔- It's easy to start up and
manage this form of business
- Don't need to register the business with a government agency, or fill in
forms.
- They're their own boss
- They keep the profits made - don't have to be shared.
Disadvantages of a Sole Trader. - 🧠 ANSWER ✔✔- Making all the
decisions can put you under pressure of holding all the responsibilities if
anything goes wrong.
- Hours can be demanding.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
, - Aren't able to afford to take time off for holidays with the risk of losing
customers.
- Difficulties in raising finance to set up and expand their businesses.
- If anything goes wrong, the sole trader has unlimited liability. They can
lose their personal possesions (e.g. house, savings, etc).
Unlimited liability - 🧠 ANSWER ✔✔This occurs when an individual or group
of individuals is personally responsible for all the actions of their business.
With sole traders, there is no distinction in law between the individual and
the business so they could lose their personal assets if the business has
financial problems
A ............. ............ is a business that is owned by its ..................., run by
............... and, most importantly, where the liability of shareholders for the
debts of the company is ......... Limited companies can either be ..............
limited companies or .............. limited companies. - 🧠 ANSWER ✔✔limited
company, shareholders, directors, limited, private, public
Private limited company - 🧠 ANSWER ✔✔A business that is owned by its
shareholders, run by directors and where the liability of shareholders for the
debts of the company is limited.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
