Types of organizations

"Unincorporated” means that a business

• Has shareholders

• Has unlimited liability for its debts

• Is a separate legal entity from its owners

• Is protected by limited liability

Which statement does not apply to sole traders?

• A business that is owned by one person

• The most common form of business ownership

• There can be more than one employer

• There may be more than one employee

Which of the following is least likely to be a disadvantage of a partnership?

• Having less control of business activities

• Having to share profits with other partners

• Managing conflict and disagreements

• Spreading workload with other partners

A drawback of public limited companies is that they

• Have limited liability

• Have to publish certain financial information to all stakeholders

• Rely on government funding

• Incorporated

A public sector enterprise is

• An organization owned by private shareholders only

• An organization owned by shareholders who can trade their shares on a stock exchange

• An organization owned by the state or government

• Any business that carries PLC after its name

Which of the following is not a reason why people may choose to set up their own business?

• There is a lack of employment opportunity

• There are higher risks than working for someone else

• To enjoy autonomy in decision-making

• To extend personal interests and hobbies

Which of the following are for-profit organizations

• Charities

• Cooperatives

• Non-government organizations

• State-owned enterprise

Which of the following is not a feature of cooperatives, like Sunkist

• Farmers are motivated to work

• Farmers may have different opinions in decision-making

• Sunkist may have a centralized structure

• Sunkist could create social gains that can be enjoyed by the community

Charities get their finance from different sources. Which of these options is the exception?

• Corporate tax refunds

• Donations

• Fund-raising events

• Selling products