Cambridge Technical Business Unit 1 LO1

Which of the following would be classified as an internal stakeholder of a private limited company?

• Central government

• Directors

• Partners

• Pressure groups

A business operated by a sole trader has:

• no tax liability

• one owner

• one shareholder

• only one stakeholder

A public limited company:

• can sell its shares on the stock exchange

• cannot cease trading

• has unlimited liability

• operates in the public sector

A business produces goods which are of an inferior quality compared to that of its competitors. This is an example of:

• a weakness of the business

• being competitive

• delegation of authority

• unethical trading

Which of the following is a political factor which may affect a public sector organisation?

• A change in cultural beliefs

• A change of government

• An improvement in communication technology

• An improvement in the standard of living

One purpose of a public limited company’s Annual General Meeting (AGM) is to:

• find a venture capitalist

• inform employees of future changes

• listen to customer viewpoints

• meet legal requirements

A partnership is owned by three brothers. The partnership goes bankrupt with debts of £30 000. According to the Partnership Act:

• each brother is jointly and severally liable for the full £30 000

• each brother is liable for only £10 000 of the debt

• the brothers do not have to repay the debt from personal funds

• the brothers would only lose the amount they have invested in the business

Which of the following is not a source of finance available to a sole trader?

• Bank Loan

• Crowd funding

• Share issue

• Venture capital

Which of the following is an example of an organisation that operates in the public sector?

• A charity shop

• A clothing manufacturer

• A local council

• A restaurant

A public limited company:

• has unlimited liability

• must hold an Annual General Meeting (AGM)

• pays income tax

• requires a deed of partnership