Read about features of three types of business organisations which exist in Great Britain: SOLE TRADER, GENERAL PARTNERSHIP and LIMITED LIABILITY PARTNERSHIP. Decide which type of business is characterised each time. Sometimes more than one answer is correct.


1.  All financial risks are taken by one person and all that person's assets are at risk.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



2.  All personal assets of each partner are at risk if the business fails.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



3.  A business itself will be liable for the full extent of its assets.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



4.  Profits may be shared unequally.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



5.  The administrative costs of running the business are small.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



6.  Capital is provided by the members.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



7.  The workload can be shared.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



8.  The owner’s all personal assets are at risk if the business fails.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



9.  Profits are usually shared between partners according to the agreement.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



10.  A business owned by one person.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



11.  Incomes derived by the members will be closer to that of a 'Partnership' than to the dividends paid by companies.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



12.  Liabilities and obligations which may arise are shared jointly. Even if you only own 1% of the business you will still be responsible for 100% of the liability.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



13.  The owner has almost complete control over how the business is run.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



14.  A very risky type of business because of all the potential for conflict, and the financial effect conflict between partners would be likely to have on the business.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



15.  Decisions are taken jointly. A deadlock may arise.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



16.  Individual partners are protected against personal liability for certain liabilities of the business.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



17.  A business run by two or more people together on the basis of a written agreement detailing this arrangement.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



18.  The business is controlled by the 'designated members' (who have a similar responsibility to a directors / secretary of a Ltd Company) and the 'members'.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)



19.  Often more money can be raised to start the business if more than one person is involved.
sole trader
general partnership
LLP (limited liability partnership)
(1 p.)