Group Quiz 1 (Ch 4.1 Types of Organization)

Which of the following is a characteristic of a sole trader?

• The business employs only one worker.

• The business has limited liability.

• The profits of the business go to the sole proprietor.

• Shares in the business go to the sole proprietor.

What is meant by ‘the separation of ownership and control’ in public limited companies?

• The companies are owned by shareholders but managed by directors and managers.

• Consumers both own and control the companies.

• Workers both own and control the business.

• The companies are owned by shareholders but managed by the state.

Which of the following is a common characteristic of a sole trader and a partnership?

• One owner

• Some scope of specialization

• Unlimited liability

• Shares traded on a stock exchange

Which of the following is a characteristic of a private limited company?

• Quoted on the stock exchange

• Dissolved on the death of one of the owner

• Shares cannot be sold to the public

• None of the above

Which of the following would not attract a MNC to set up in a country?

• High corporate taxes

• Government grants

• Easy employment laws

• Cheap land

What distinguishes a multinational company from other companies?

• It has agents in other countries.

• It has its headquarters in one country and operates in other countries.

• It pays taxes in every country it operates in

• It complies with all local laws and regulations in all countries it operates in

Which of the following is not a privately-owned business organization?

• Public limited company

• Partnership

• Public corporation

• Consumer cooperative

If a company has unlimited liability, this means:

• the business cannot go bankrupt

• the owner must meet all the business debts

• the business has sold shares

• the business is only small

Which of the following best describes a public limited company?

• A company owned by a government.

• A multinational corporation.

• A company owned by its workers

• A company that is listed on a stock exchange

One of the main disadvantages of a large limited company is that:

• Owners of the company may lose control to the company directors.

• Specialization is not possible.

• There are no organized markets where shares in the company can be purchased.

• There is a lack of capital.