What is a sole trader?

A self-employed person who owns and runs their own business

A person who works for a company

A person who invests in multiple businesses

A person who manages a team of employees

What is a characteristic of a sole trader business?

The owner has absolute control over the business

It has a separate legal identity from its owner

It is a publicly traded company

What is one of the main advantages of being a sole trader in terms of control?

You have full control and can develop the business as you choose.

You must consult with shareholders.

You need to compromise your vision for the business.

You have to take account of directors' views.

How does profit retention benefit a sole trader?

Sole traders retain all profits and can keep costs low.

Profits are shared with shareholders.

Profits are automatically reinvested.

Profits are distributed among employees.

What is a privacy advantage for sole traders compared to limited companies?

Financial information is kept private.

Financial information is publicly accessible.

Personal details are part of Companies House record.

Competitors have more information about the business.

What is a challenge faced by sole traders regarding decision-making?

No one to share accountability with

What is one financial advantage of partnerships over sole traders?

Partnerships can raise more finance than sole traders.

Sole traders can raise more finance than partnerships.

Partnerships have fewer financial obligations.

Sole traders have more access to bank loans.

How can different partners benefit a business?

By bringing different skills to the business.

By bringing the same skills to the business.

By reducing the number of employees needed.

By increasing the business's expenses.

What is a workload advantage of partnerships compared to sole traders?

Partners can share the workload and responsibility.

Sole traders can share the workload and responsibility.

Sole traders have more partners to share the workload.

What is one disadvantage of a partnership compared to a sole trader?

Partners may disagree about business direction.

Sole traders have unlimited liability.

Sole traders share profits with others.

Partnerships have limited liability.

How is profit typically shared in a partnership?

Profit is shared between its investors.

Profit is shared equally among all employees.

What is a key characteristic of a private limited company?

Its finances are separate from the owners' personal finances.

Its shares are available to the public on the stock exchange.

Its owners are personally liable for the firm's debts.

It does not have a separate legal identity.

Why is it harder to motivate and control workers in limited companies?

Because profits are only shared with shareholders.

Because profits are shared with all employees equally.

Because workers receive bonuses instead of shares.

Because workers have no job security.

What is a key characteristic of a public limited company (Plc)?

Shares are sold to the public on the stock market.

Shares are sold privately to a small group of investors.

It is managed by a single owner.

It cannot sell shares on the stock market.

What does limited liability mean for shareholders?

Shareholders can only lose the amount they invested.

Shareholders are responsible for all business debts.

Shareholders have unlimited profit potential.

Shareholders must manage the business operations.

What happens to the money made by charities?

It goes back into the charity to help achieve the mission

It is distributed among shareholders

It is used for personal expenses

What is the definition of liability?

The state of being legally responsible for something.

The ability to make decisions independently.

The process of creating a financial plan.

The act of borrowing money from a bank.

Business Ownership Quiz

Quiz

•

Business

•

12th Grade

•

Practice Problem

•

Medium

Laura Pratt

Used 3+ times

FREE Resource

35 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the three main categories of business ownership?

Sole Proprietorship, Partnership, Corporation

Private Ownership, Public Ownership, Not for Profit

Franchise, Cooperative, Joint Venture

Limited Liability, Unlimited Liability, Partnership

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of business is owned and controlled by one person, although they may employ workers?

Sole trader

Partnership

Private limited company

Public limited company

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a business owned by more than one person called?

Sole trader

Partnership

Private limited company

Public limited company

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of business is a larger business able to sell shares on the stock exchange?

Sole trader

Partnership

Private limited company

Public limited company

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What type of business is owned by its shareholders but managed and controlled by directors?

Sole trader

Partnership

Private limited company

Public limited company

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Evie runs a small bakery by herself, although she has a few employees. What is her business called?

Partnership

Sole Trader

Private limited company

Public limited company

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of business is owned by more than one person?

Sole Trader

Partnership

Private limited company

Public limited company

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Business Ownership Quiz

35 questions

What are the three main categories of business ownership?

Which type of business is owned and controlled by one person, although they may employ workers?

What is a business owned by more than one person called?

Which type of business is a larger business able to sell shares on the stock exchange?

What type of business is owned by its shareholders but managed and controlled by directors?

Evie runs a small bakery by herself, although she has a few employees. What is her business called?

Which type of business is owned by more than one person?

What is a business called that is owned by its shareholders but managed and run by directors?

Which type of business is able to sell shares on the stock exchange?

What is a sole trader?

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