QCE Business Unit 1.1 2025 Legal Structures of Business Quiz

What is the legal structure of a business owned and operated by one individual?

• Partnership

• Private company

• Sole trader

• Public company

Which of the following legal structures provides unlimited liability for its owners?

• Sole trader

• Private company

• Public company

• Franchise

What is an advantage of a sole trader structure?

• Limited liability

• Full control over business decisions

• Easy access to capital

• Shared responsibilities

What is a key disadvantage of being a sole trader?

• Unlimited liability

• Limited liability

• Profit-sharing

• Complex decision-making

In which business structure are profits solely retained by the owner?

• Partnership

• Sole trader

• Public company

• Private company

A business run by two or more people where the owners share profits is called a:

• Partnership

• Sole trader

• Private company

• Public company

Which of the following business structures has unlimited liability for its owners?

• Private company

• Partnership

• Public company

• Limited company

Which is an advantage of a partnership structure?

• Shared responsibilities

• Unlimited liability

• Sole control

• Complicated set-up

What is a key disadvantage of a partnership?

In which structure do partners share both profits and liabilities?

• Partnership

• Sole trader

• Public company

• Private company