Business Structures Quiz

Indicate in the table below whether a sole trader, limited company, partnership, or charity needs to prepare financial statements in accordance with the Financial Reporting Standards.

• Sole Trader

• Limited Company

• Partnership

• Charity

What does the statement of profit and loss show? Select all that apply.

• Assets

• Income

• Liabilities

• Expenditure

What does the statement of financial position show? Select all that apply.

• Assets

• Income

• Liabilities

• Expenditure

Ellie and Cameron run a small business making handmade clothes. They each put £2,000 into the business. They share any decisions, any debts, and any profit. What type of business ownership is this?

• Sole Trader

• Limited Company

• Partnership

• Charity

What is the main difference between a limited company and a public limited company?

• A limited company cannot sell shares to the public, while a public limited company can.

• A limited company is owned by the government, while a public limited company is privately owned.

• A limited company has unlimited liability, while a public limited company has limited liability.

• A limited company is only found in the UK, while a public limited company is international.

Select the correct answer from the options below. Select one answer.

• Financial statements should include the personal transactions of the business owner

• A business is treated as separate from its owners

Select the type of business that is referred to as an unincorporated business. Select all that apply.

• Limited company

• Partnership

• Public limited company

• Sole trader