Business Organisation Quiz

What is a sole trader?

• A business owned by one person

• A type of public limited company

• A business owned by multiple people

• A partnership with limited liability

What is a key disadvantage of a sole trader?

• Limited liability

• Shared responsibilities

• Unlimited liability

• Access to huge capital

What is a partnership?

• A business owned by one person

• A group of at least two people running a business together

• A type of public limited company

• A business with limited liability

Which of the following is an advantage of a private limited company?

• Unlimited liability

• No legal entity

• Access to huge capital base

• Slow decision making

What is a disadvantage of a public limited company?

• Limited liability to shareholders

• Sufficient capital for expansion

• Lack of privacy as financial statements are published

• High status attracting suppliers

What document contains the rules for managing a company?

• Certificate of Incorporation

• Articles of Association

• Partnership Deed

• Memorandum of Association

What is a feature of a partnership?

• It is a public limited company

• It is owned by one person

• It has unlimited liability

• It has a legal entity

What is a key feature of a private limited company?

• It has unlimited liability

• It does not quote its shares in the stock exchange

• It has no legal entity

• Shares are easily transferred

What happens to a partnership when a partner dies?

• The partnership continues indefinitely

• The partnership may end

• The remaining partners must pay a fine

• The partnership becomes a sole trader

What is the abbreviation for a limited partnership?

• LP

• LLP

• PLC

• LTD