Types of Businesses Quiz

Which sector includes Social Enterprises?

• Private Sector

• Public Sector

• Third/Voluntary Sector

• None of the above

Which sector includes Scottish Government Organisations?

• Private Sector

• Public Sector

• Third/Voluntary Sector

• None of the above

How many people own a sole trader business?

• 2 people

• 1 person

• 3 people

• 4 people

Who controls a sole trader business?

• A group of investors

• A board of directors

• 1 person

• The government

Which of the following is NOT a feature of a sole trader?

• Owned by 1 person

• Controlled by 1 person

• Financed by owners' equity

• Managed by a board of directors

What is the main advantage of being a sole trader?

• Shared responsibility

• Easy to raise capital

• Full control over the business

• Limited liability

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

• Limited liability

• Shared profits

• Full control over decisions

• Unlimited liability

Why is it relatively easy and cheap to set up a sole trader business?

• Because the owner makes all of the decisions

• Because the owner keeps all of the profits

• Because you do not need to complete lots of legal documents

• Because it is harder to get loans from banks

What is the maximum number of partners that can own a partnership?

• 10

• 15

• 20

• 25

In a partnership, who makes the decisions for the business?

• A single manager

• The government

• 2-20 partners

• External investors