UNIT 3 AOS 1 BUSINESS MANAGEMENT
COMPLETE STUDY GUIDE PRACTICE
QUESTIONS AND ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Business An organisation where goods and services are
exchanged for money.
What are the 6 types of Businesses? - Sole Trader
- Partnership
- Private Limited Company
- Public Limited Company
- Social Enterprise
- Government Enterprise
Sole Trader An individual who owns and runs the operations of
a business.
They trades under their own name or under a
registered business name and is entitled to keep all
the profits after tax but also has unlimited liability.
Sole Trader: - Simple & Inexpensive to establish
Advantages - Owner has total control over business
- Simple to wind up the business
- Minimal government regulation
, Sole Trader: - Unlimited Liability
Disadvantages - Harder to obtain finance
- Highly reliant on the owners knowledge and skills
which may be limited
- Often difficult to expand with limited capital
Partnership A legal form of business ownership which two or
more partners work together to manage and
operate a business and each partner is jointly liable
for business debts incurred, as unlimited liability
applies to each partner.
There are 2 types of Partnerships - General and
Limited.
General Partnerships All partners are deemed equally responsible for
management of the business.
Limited Partnerships The Liability of one or more partners is limited.
Partnerships: - Inexpensive and Simple
Advantages - Risk is shared between partners
- Workload may be shared
- Offers broader access to capital, knowledge,
skills & experience
Partnerships: - Unlimited Liability
Disadvantages - Liability for debts incurred by partners
- Business could be threatened by one partner
leaving - no perpetuity
- Potential for diputes
Private Limited Company A business owned by private shareholders which
are not available to the public. It can be owned by
up to 50 shareholders and has limited liability.
COMPLETE STUDY GUIDE PRACTICE
QUESTIONS AND ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Business An organisation where goods and services are
exchanged for money.
What are the 6 types of Businesses? - Sole Trader
- Partnership
- Private Limited Company
- Public Limited Company
- Social Enterprise
- Government Enterprise
Sole Trader An individual who owns and runs the operations of
a business.
They trades under their own name or under a
registered business name and is entitled to keep all
the profits after tax but also has unlimited liability.
Sole Trader: - Simple & Inexpensive to establish
Advantages - Owner has total control over business
- Simple to wind up the business
- Minimal government regulation
, Sole Trader: - Unlimited Liability
Disadvantages - Harder to obtain finance
- Highly reliant on the owners knowledge and skills
which may be limited
- Often difficult to expand with limited capital
Partnership A legal form of business ownership which two or
more partners work together to manage and
operate a business and each partner is jointly liable
for business debts incurred, as unlimited liability
applies to each partner.
There are 2 types of Partnerships - General and
Limited.
General Partnerships All partners are deemed equally responsible for
management of the business.
Limited Partnerships The Liability of one or more partners is limited.
Partnerships: - Inexpensive and Simple
Advantages - Risk is shared between partners
- Workload may be shared
- Offers broader access to capital, knowledge,
skills & experience
Partnerships: - Unlimited Liability
Disadvantages - Liability for debts incurred by partners
- Business could be threatened by one partner
leaving - no perpetuity
- Potential for diputes
Private Limited Company A business owned by private shareholders which
are not available to the public. It can be owned by
up to 50 shareholders and has limited liability.
