Types of Business Ownership Quiz

What is a sole trader?

• A business owned by two or more people

• A business that offers shares to the public

• A business owned by shareholders

• A business owned and controlled by one person

What percentage of the total private sector business population in the UK were sole traders in 2019?

• 75%

• 82%

• 59%

• 45%

Which of the following is a key disadvantage of being a sole trader?

• Limited liability

• Shared decision making

• High startup costs

• Unlimited liability

What is a partnership agreement?

• A document that outlines the business's marketing strategy

• A document that outlines the business's financial plan

• A document agreed and signed by all partners covering key legalities

• A document that registers the business with the government

What is a key advantage of a partnership?

• Shared expertise and teamwork

• High startup costs

• Limited decision making

• Unlimited liability

What does 'Ltd.' stand for in a private limited company?

• Limited Liability

• Limited Partnership

• Limited Company

• Limited

Which of the following is a key advantage of a private limited company?

• No legal requirements

• More tax efficient

• Unlimited liability

• Shares offered to the public

What is a public limited company often referred to as?

• Ltd.

• PLC

• LLP

• Sole Trader

What is a key advantage of a public limited company?

• Unlimited liability

• Limited liability

• No legal requirements

• Shares cannot be offered to the public

Who is the franchisee in a franchise model?

• The person who owns the trademarks and business model

• The person who purchases the rights to the franchise

• The person who provides training to the franchisee

• The person who monitors business performance