Business Ownership Quiz

What is the simplest form of business ownership?

• Partnership

• Private Limited Company

• Sole Trader

• Corporation

In a sole trader business, who has control over business decisions?

• Board of Directors

• The owner

• Shareholders

• Partners

How are profits taxed in a sole trader business?

• As corporate income

• As personal income

• Not taxed

• As capital gains

Which business ownership type provides limited liability to its owners?

• Sole Trader

• Partnership

• Private Limited Company

• Cooperative

What is a key feature of ownership in a Public Limited Company (PLC)?

• Owned collectively by its members

• Shares can be publicly traded on the stock exchange

• Owned by a single individual

• Owned by the government

What is a primary method of capital raising for a Public Limited Company (PLC)?

• Borrowing from banks

• Selling shares to the public

• Government grants

• Donations from members

What is the main characteristic of ownership in a cooperative?

• Owned by shareholders

• Owned by a single individual

• Owned collectively by its members

• Owned by the government

What is the role of the franchisor in a franchise?

• Purchases the rights to operate the business

• Provides the business name and system

• Manages the day-to-day operations

• Owns all the profits

What is a key feature of control in a Public Limited Company (PLC)?

• Controlled by a single owner

• Shareholders elect a board of directors

• Controlled by government officials

• No control structure is needed

What is the liability structure for shareholders in a Public Limited Company (PLC)?

• Unlimited liability

• Limited liability

• No liability

• Shared liability