Chapter 2 Types of Business Entities

Which business types can only be owned by 1-person

• Sole-Proprietorship

• Partnership

• Corporation

• Publicly Held Companies

• NGO

Which business entities allows 2 or more owners

(HINT: more than 1 answer)

• Sole-proprietorship

• Partnership

• Corporation

Social enterprises, including cooperatives and non-governmental organizations, operate in the public sector of the economy.

• True

• False

Having limited liability means that owners of a business can only lose the money they have invested, and no more.

• False

• True

What is the primary goal of business development?

• Expanding the customer base

• Reducing production costs

• Improving employee satisfaction

• Streamlining internal processes

Which statement does not apply to sole traders?

• There can be more than one employer

• 
  It is the most common form of ownership

• 
  A business that is owned by one person

• 
  There may be more than one employee

Which of the statements about shareholders is correct?

• An advantage for shareholders is having limited liability

• As co-owners of a company, shareholders have equal voting rights

• They own and control private and public limited companies

• 
  They are always paid dividends for investing in the company

What is the other name for a Publicly Held Company?

• Public Limited Company

• 
  Private sector company

• 
  Limited liability company

• 
  Privately held company

Objectives of Social Enterprises

• Economic

• Environment

• Cultural

• Politic

• Social

A public sector enterprise is

• An organisation owned by the state or government

• An organisation owned by private shareholders only

• An organisation owned by shareholders who can trade their shares on a stock exchange

• Any business that carries ‘PLC’ after its name