11 Revision

Which of the following is NOT one of the four main legal structures of privately owned businesses?

• Sole Trader

• Cash Only Business

• Private Company

• Partnership

What is the primary difference between incorporated and unincorporated business structures?

• Incorporated businesses have separate legal entity status, while unincorporated businesses do not.

• Incorporated businesses have unlimited liability, while unincorporated businesses have limited liability.

• Incorporated businesses do not need to register their names, while unincorporated businesses do.

• Unincorporated businesses can raise funds from the public, while incorporated businesses cannot.

A sole trader has complete control, while an ​ (a)   business is controlled by ​ (b)  

• incorporated
• unincorporated
• board of directors
• government

In which of the following business structures are the owners personally liable for the debts of the business?

• A) Sole Trader

• B) Private Company

• • C) Public Company

• D) Limited Partnership

What does the term 'limited liability' mean in the context of company structures?

• A) Shareholders are only liable for debts up to the amount they invested in the company.

• B) Shareholders are personally liable for all company debts.

• C) The company must limit the number of shareholders.

• D) The companys debt fall onto the customers

Match the following

• Tesla

• Partnership

• Local Corner Shop

• Private Company

• IKEA

• Sole Trader

• Wachtell, Lipton, Rosen & Katz Law

• Public Company

When you see Pty Ltd what type of business is it?

• Sole Trader

• Private Company

• Public Company

• Partnership

What is a primary advantage of a public company over a private company?

• • A) No requirement to publish annual financial statements

• • B) Easier to raise capital by selling shares to the public

• • C) Fewer regulatory requirements

• • D) Restricted shareholder transferability

Which legal structure is characterised by having a business that continues to exist even if the owner changes?

• • A) Sole trader

• • B) Partnership

• • C) Private company

• • D) Trust

What is the Economic Cycle?