Forms of Businesses

What type of liability does a sole trader have?

• Limited

• Unlimited

• Private

What is a private limited company often abbreviated as?

• Ltd

• ARR

• PLC

Which one of the following types of business can sell shares to the general public?

• Private Limited

• Partnerships

• PLC

Which of the following statements about partnerships is true?

• A partnership can have a maximum of 20 owners

• A partnership must have at least two owners

• A partnership must have a deed of partnership

Which of the following statements about sole traders is true?

• Sole traders can only employ one person

• Sole traders have limited liability

• Sole traders make all the business decisions

What do the letters “Plc” in the name of a business stand for?

• Public Liability Company

• Public limited company

• Private limited company

Which of these is a benefit of being partnership?

• There are more ideas in the business

• The owners have to give away a share of the business profits

• There is unlimited liability

Which of these is a disadvantage to being a sole trader?

• Limited liability

• Being your own boss

• Being personally responsible for all business debts

• Sharing profits

What are the owners of a private or public limited company referred to?

• Shareholders

• Stakeholders

• CEO

The letters ‘LLP’ indicate that a partnership has which of the following features?

• Limited liability

• A deed of partnership

• At least 2 owners