Types of Business Organisation (Grade 7)

What is called a business owned and controlled by just one person?

• Sole trader

• Partnership

• Limited company

Which of the following is an advantage of partnership businesses ?

• Shared decision making

• Share the profits

• Unlimited liability

Which of the following is not an advantage of sole trader?

• Keeps the profit

• Unlimited liability

• Has complete control

Private limited companies can sell shares to the public.

• True

• False

What is called a person or an organisation who owns shares in a limited company?

• Shareholder

• Stakeholder

• Entrepreneur

What is called the payment, out of profits, to shareholders as a reward for their investment.?

• Retained profit

• Revenue

• Divided

Which of the following is not an advantage of partnerships?

• Shared decision making

• Limited liability

• Easy to set up

Which of the following is an advantage of sole traders?

• Unlimited liability

• May have to work long hours

• Easy to set up

Which of the following is an advantage to the franchisee?

• No full control over the business

• Profits have to be shared

• Chance of business failing is low

Which of the following is an advantage to the franchisor?

• Low cost method of business expansion

• Gets income in the form of royalties

• Loss of control