Year 8 Business Ownership - Pop Quiz

Owned and operated by one person.

• Partnership

• Private Company

• Sole Trader

• Pubilc Company

Unlimited Liability is when

• Shareholders in the company will only lose the money they have invested.

• The owner has to pay off all the debts of the business. To the extent that their private assets may be sold to cover the businesses debts.

• The amount of money the owner invests into the business.

Capital is defined as

• The amount of money/assets the owner invests into the business

• The first letter of a sentence

• The money the owner withdraws from the business

Partners have unlimited liability for the debts of their business.

• False

• True

The owners agree on how they will divide profits/losses and work load.

• Sole Trader

• Private Company

• Partnership

• Public Company

The shareholders of this type of business ownership (often family members) can be employed by the company.

• Public Company

• Partnership

• Private Company

One of the costs of being a sole trader is...

• Retains all profit

• Long hours of work

• Easy to establish

• Low start up costs

Can a private company can sell shares on the ASX?

• Yes

• No

Number of people allowed in a partnership business structure are...

• 2

• 2-10

• 1-3

• 2-20

The business can sell shares to the public to raise more capital.

• Public Company

• Sole Trader

• Partnership

• Private Company