1.2 Business Structure Quiz

What is a sole trader?

• A business owned by multiple people

• A business owned by one person

• A business owned by a corporation

• A business owned by the government

What is a key benefit of a partnership?

• Unlimited liability

• Shared responsibility

• Single decision-maker

• No profit sharing

What does "Ltd" stand for in business terms?

• Limited

• Large

• Legal

• Local

What is a characteristic of a private limited company?

• Shares traded publicly

• Limited liability

• Unlimited liability

• Owned by the government

What is a public limited company?

• A company with shares traded privately

• A company with shares traded publicly

• A company owned by one person

• A company with no shares

What is a not-for-profit organisation?

• An organization that aims to make a profit

• An organization that does not aim to make a profit

• An organization that only makes a profit

• An organization that is owned by the government

What is a drawback of a sole trader?

• Shared profits

• Unlimited liability

• Limited liability

• Public trading of shares

Which legal structure benefits from limited liability?

• Sole trader

• Partnership

• Private limited company

• Not-for-profit organization

What is a benefit of a public limited company?

• Shares are not traded

• Limited liability

• Owned by one person

• No board of directors

What is a drawback of a partnership?

• Unlimited liability

• Limited liability

• No shared responsibility

• No profit sharing