Edexcel GCSE Business Quiz

What does limited liability mean for business owners?

• They are personally responsible for all business debts.

• Their personal assets are protected if the business cannot pay its debts.

• They cannot sell their shares to the public.

• They must share profits equally among shareholders.

Which of the following is an advantage of being a sole trader?

• Access to limited liability.

• Full control over decision-making.

• Easier access to finance.

• Shared responsibility for business operations.

What is a key disadvantage of running a partnership?

• Profits are not shared among partners.

• Decision-making can be slow due to disagreements.

• The business is always a large-scale operation.

• Partnerships have limited liability by default.

Which of the following is a feature of a private limited company (Ltd)?

• Shares can be sold on the stock exchange.

• It is owned and run by one individual only.

• Shareholders have limited liability.

• The company cannot take out loans.

What is an advantage of starting a franchise?

• The franchisee has total freedom over branding and marketing.

• The franchisee benefits from an established brand name.

• The franchisee is not required to pay royalties or fees.

• The franchisee has no obligation to follow the franchisor's guidelines.

Which of the following is a disadvantage of franchising for the franchisor?

• Loss of control over how the brand operates in different locations.

• Increased workload to manage business operations.

• High costs of running the franchise.

• Difficulty in hiring employees.

What is an advantage of a partnership?

• Limited liability for partners.

• Easier access to finance compared to sole traders.

• No legal formalities required to set up.

• Full decision-making control for one partner.

Which of the following is a disadvantage of being a sole trader?

• Difficulty in decision-making.

• Shared responsibility with others.

• Unlimited liability for business debts.

• High setup costs.

What is a key feature of unlimited liability?

• Owners are protected from personal financial loss.

• Owners are personally responsible for all debts of the business.

• Owners have limited control over decision-making.

• The business must be registered as a limited company.

What is an advantage of running a private limited company (Ltd)?

• It allows shares to be sold to the general public.

• Shareholders benefit from limited liability.

• There are no legal formalities required to set up.

• Profits are always shared equally among all stakeholders.