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SingaporeElements of Business SkillsQuick questions
The World of Business
Quick questions on Types of business ownership: N-Level Elements of Business Skills
4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is sole proprietor?Show answer
A sole proprietor (also called a sole trader) is a business owned by one person. Many hawker stalls, small shops, and one-person services such as a tutor or a plumber are sole proprietors.
What is partnership?Show answer
A partnership is a business owned by two or more people, called partners, who share the work, the money needed, and the profit. A small law firm, a clinic with two doctors, or two friends running a cafe might be a partnership.
What is company?Show answer
A company is a business that is a separate legal body from its owners. The owners are called shareholders, and they have limited liability, which means they can only lose the money they put in - their personal savings are protected. Big businesses such as a supermarket chain are companies, but small businesses can be companies too.
What is choosing the right type?Show answer
The right type depends on the size and risk of the business. One person starting small and simple often picks sole proprietor. Two or more people who want to share the load pick a partnership. A business that wants to protect its owners' savings and grow larger forms a company.
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