grade 10 >2nd business quiz ( business structure + size)

The primary sector of the economy includes businesses engaged in which one of the following activities?

• manufacturing

• retailing

• farming

• tourism

Industrialisation is considered to bring many benefits to an economy. Which one of the following is not a benefit of industrialisation?

• Value is added to the country’s output of raw materials.

• Gross domestic product (GDP) increases.

• There is an associated movement of people from the country to the towns.

• Expanding manufacturing businesses will result in more jobs being created.

Which one of the following is not a characteristic of a sole-trader business?

• There is a single owner of the business.

• The owner has unlimited liability.

• The owner is able to keep all of the profits.

• The business has a separate legal identity.

A consequence of having limited liability is that:

• owners are, financially, responsible only for the amount they have invested in the business

• owners risk not only the money they have invested in a business, but also their personal wealth

• investing in business is free of risk

• owners have no control over their business

Which one of the following is not a characteristic of a limited company?

• It is owned by shareholders.

• Owners have limited liability.

• The company has a separate legal identity.

• The death of an owner usually results in the dissolution of the business.

Which one of the following statements applies to a public limited company?

• Shareholders have unlimited liability.

• It is owned by the state.

• There is a greater risk of takeover due to the availability of its shares on the Stock Exchange.

• It is in the public sector.

Which one of the following reasons is the most likely motivation for a private limited company converting to a plc?

• to benefit from limited liability

• to benefit from government financial support

• to raise capital

• to increase the divorce between ownership and control

Which one of the following information appears in the Memorandum of Association?

(i) the maximum share capital for which the company seeks authorisation

(ii) the internal workings and control of the business

(iii) the names of directors

• point (i) only

• points (ii) and (iii) only

• points (i), (ii) and (iii)

• none of the above

Which one of the following is not a form of legal structure for a business?

• partnership

• franchise

• private limited company

• public limited company

A franchise is defined as a business that:

• exists to promote the interests of its workers

• uses the name, logo and trading systems of an existing business

• owns and controls a number of separate businesses, but does not unite them into a unified company

• is a joint venture between two or more businesses