Business entities quiz

A business owned and operated by one individual is otherwise known as a

• Partnership

• Joint venture

• Sole trader

• Franchise

Pizza Hut, Haagen-Dazs, Starbuck's are all known examples of what type of business enterprise that exists in Trinidad and Tobago?

• Joint venture

• Partnership

• Sole trader

• Franchise

One feature of a sole trader business is that they do not have employees. They operate the business entirely on their own.

• True

• False

Sole traders and partnerships have unlimited liability

• True

• False

Public sector companies are able to sell shares via the stock exchange to members of the public

• True

• False

One advantage of a partnership is that ..

• More ideas are brought in

• The decisions of one partner affects all

• Decision making takes longer

• If one partner incurs debt, it is now the debt of all partners

One advantage of a sole trader over a public limited company is that

• Sole traders are usually better able to source finance

• Sole traders typically have better reputations

• Sole trader business have less legal formalities in setting up

• Sole traders have more ideas than the members of a board of directors

A joint venture is a collaboration between two companies where the companies work together on a project/product while maintaining their existing brands.

• True

• False

If a company has unlimited liability, their personal assets may need to be sold to repay debts

• True

• False

Private limited companies require shareholders to be invited to invest

• True

• False