Business Organisations Quiz

Which of the following is a source of capital or finance to a Sole proprietor?

• Sale of Shares

• Sale of Debentures

• Personal Savings

• Stolen Money

A type of business organisation where the owners of the business are the main customers is known as

• cooperative society

• sole trader

• partnership

• joint stock company

A type of business organisation where 2 to 20 persons pool their resources together to run a business is known as a

• joint stock company

• public corporation

• partnership

• cooperative society

What is the main difference between Private and Public Joint Stock Companies?

• Number of employees and their salaries

• Size of the company and its location

• Number of shareholders and availability of financial information

• Type of products sold and marketing strategies

Which source of finance involves using profits that the company has earned in the past?

• Loans from financial institutions

• Retained earnings

• Sale of Debentures

• Sale of Shares

What is the advantage of Limited Liability for shareholders in a Joint Stock Company?

• They can easily sell their shares if they want to liquidate their holding

• Their personal assets are at risk in case of company debts

• Their liability is limited to the amount they have invested in the company

• They have to share profits with other shareholders

Which of the following is not a private sector business organization?

• Public Limited Company

• Partnership

• Public Corporation

• Consumer Cooperative

When a joint stock company makes profit, a shareholder is expected to receive

• interest

• money

• wages

• dividend

 Who owns a public sector organisation?

• Individuals

• Shareholders

• Specialist managers

• The Government

The following kinds of business organizations are set – up to make profit except  

• Partnership

• Public corporations

• Sole Proprietorship

• Joint Stock Company