Types of Business Organizations - Chapter 4

What is a business that is owned by 1 person?

• Public Limited Company

• Private Limited Company

• Partnership

• Sole Trader

The liability of the shareholders of a company is limited to the amount that they have invested is called ...?

• Limited Liability

• Unlimited Liability

Sole Traders and Partnerships have the advantage of continuity.

• True

• False

A form of business in which 2 or more (up to 20) people agree to jointly own a business.

• Sole trader

• Partnership

• Private Limited Company

• Multinational

The written and legal agreement between business partners is called ...?

• Partnership Agreement

• Contract

The owners of all businesses (Sole Traders, Partnerships and Companies) are called 'shareholders'.

• True

• False

Only the owners of Private and Public Limited Companies are referred to as 'shareholders'.

• True

• False

Payments made to shareholders from the profits of a company as a return for their investment in this company is called...?

• Dividends

• Shares

• Profit share

• Bonus

Which one of the below businesses does not sell its shares to the public?

• Sole trader

• Partnership

• Private Limited Company

• Public Limited Company

Which one of the below is a disadvantage of a Sole Trader business?

• There is no one to take decisions with

• The owner keeps all the profits

• The owner chooses when to work and who to employ

• It is easily formed