16.3
Exercise
Learning pathways LEVEL1 1, 2, 3, 5
LEVEL2
LEVEL3
4, 6, 8
7, 9, 10
REMEMBER AND UNDERSTAND 1. Identify the difference between a sole proprietorship and a partnership. A. A sole proprietorship has unlimited liability but a partnership does not. B. A partnership has unlimited liability but a sole proprietorship does not. C. A sole proprietorship has only one owner and a partnership has two or more owners. D. There is no difference. 2. A partnership has unlimited liability. True or false?
3. Explain what is meant by a cooperative. 4. List ýve examples of franchise businesses.
5. Circle the correct options to complete the sentences. Unlimited / Short-term / Limited / Fixed / Financial liability means that the owner(s) of a business can be held personally responsible for the business’s debts. Unlimited / Short-term / Limited / Fixed / Financial liability means that if the business cannot pay its debts, shareholders in the corporation will only lose the money they have invested. ANALYSE AND APPLY 6. Distinguish between a sole proprietorship and a partnership. 7. ‘The public corporation ownership structure allows access to greater ýnance but can lead to a loss of control
of a business.’ Discuss this statement. 8. Deýne what is meant by a partnership. 9. List the possible consequences of the partners of a business having a dispute. EVALUATE AND COMMUNICATE 10. Evaluate the beneýts of operating a business as a franchisee. Answers and sample responses for this topic are available online.
558 Jacaranda Humanities Alive 7 Victorian Curriculum Third Edition
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