Year 10 GCSE 1

What is the main characteristic of a sole trader?

• Unlimited liability

• Shares sold on the stock exchange

• Owned by multiple partners

• Limited liability

Which legal structure involves joint ownership and shared decision-making?

• Sole trader

• Partnership

• Private limited company

• Public limited company

What does "limited liability" mean?

• The company cannot borrow money

• The business has a limited lifespan

• Owners lose personal assets in case of business failure

• Owners are not responsible for the company’s debts beyond their investment

Which type of business can sell shares to the public on the stock exchange?

• Sole trader

• Partnership

• Private limited company (Ltd)

• Public limited company (PLC)

What is a key disadvantage of being a sole trader?

• Limited flexibility in decision-making

• Limited flexibility in decision-making

• Unlimited liability for debts

• Difficulties in forming the business

What is an advantage of a partnership over a sole trader?

• Unlimited liability

• Easier to make decisions

• More sources of capital and shared responsibility

• Fewer regulations

Who typically owns a public limited company (PLC)?

• Government officials

• Shareholders who buy shares on the stock exchange

• A single entrepreneur

• A single entrepreneur

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

• Unlimited liability

• Shares cannot be sold to the general public

• No legal requirement for registration

• Operates as a not-for-profit organization

What is a disadvantage of a public limited company (PLC)?

• Limited access to finance

• Loss of control by the original owners

• Unlimited liability

• Lack of transparency to shareholders

What is a legal requirement for all companies?

• Filing accounts with Companies House

• Paying business rates

• Registering with HM Revenue & Customs (HMRC) for tax purposes

• Selling shares