Business Organization Quiz

What is an unincorporated business?

• A business owned by shareholders

• A business with limited liability

• A business that has a separate legal identity

• A business that does not have a separate legal identity from its owner

Which of the following is a characteristic of an incorporated business?

• Unlimited liability

• No separate legal identity

• Limited liability

• Owned by a single person

What is a sole trader?

• A franchise operation

• A business owned by two or more people

• A business owned and controlled by one person

• A type of public limited company

What is a disadvantage of a partnership?

• No legal existence

• Easy to expand

• Unlimited liability

• Limited liability

What is a private limited company?

• A company owned by shareholders with limited liability

• A company that can sell shares to the public

• A sole trader business

• A business with unlimited liability

What is a key advantage of a public limited company?

• Limited liability

• Unlimited liability

• Shares can only be sold to family and friends

• No legal documents required

What is a disadvantage of a franchise?

• No advertising support

• Bad reputation of one franchisee affects all

• Franchisee can make all decisions

• High chances of failure

What does 'limited liability' mean?

• Business can be sued personally

• No legal identity for the business

• Owners only lose what they invested

• Owners are responsible for all debts

What is a joint venture?

• A type of public limited company

• A partnership between two or more businesses for a project

• A franchise agreement

• A business owned by one person

What is a disadvantage of a private limited company?

• Limited liability

• Slower to startup due to legal documents

• Shares can be sold to the public

• No continuity of existence