Business Structures Quiz

What is a sole trader?

• A) A business owned by two or more people

• B) A business owned and operated by one person

• C) A large corporation

• D) A non-profit organization

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Which of the following is a major advantage of being a sole trader?

• A) Unlimited liability

• B) Complete control over the business

• C) Easy to raise capital

• D) Shared responsibilities

What is the primary disadvantage of a partnership?

• A) Easy to set up

• B) Shared decision-making

• C) Unlimited liability for all partners

• D) Flexibility in operations

In a partnership, profits are usually:

• A) Kept by the managing partner only

• B) Distributed equally among all partners

• C) Reinvested into the business

• D) Given to employees as bonuses

What type of business structure is a company?

• A) A business owned by one person

• B) A business owned by shareholders

• C) A non-profit organization

• D) A cooperative

Which of the following is true about companies?

• A) Owners have unlimited liability

• B) Companies can raise capital by selling shares

• C) They are easier to form than sole proprietorships

• D) They have no legal existence separate from their owners

What is the main difference between a for-profit social enterprise and a non-profit social enterprise?

• A) For-profit social enterprises aim to maximize profits, while non-profits do not

• B) Non-profits are taxed more heavily

• C) For-profits do not have social goals

• D) Non-profits cannot generate any revenue

Which of the following is an example of a for-profit social enterprise?

• A) A charity organization

• B) A company that reinvests profits to achieve social goals

• C) A government agency

• D) A volunteer group

What is the main objective of a non-profit social enterprise?

• A) To make as much profit as possible

• B) To provide services without any revenue

• C) To achieve social or environmental goals without profit motive

• D) To support governmental functions

Which business structure is characterized by limited liability for its owners?

• A) Sole trader

• B) Partnership

• C) Company

• D) Cooperative