Business and Self-Employment Quiz

What types of activities can businesses be engaged in?

• Only commercial activities

• Only industrial activities

• Only professional activities

• Commercial, industrial, or professional activities

What is another type of self-employment besides Sole Trader?

• Partnership

• Franchise

• Cooperative

• Corporation

In a partnership, who pays tax on the business profits?

• Only one partner.

• The government.

• Each partner pays tax on their share.

• No one pays tax.

What is a characteristic of a partnership?

• Only one person is in charge.

• Two or more people share responsibility.

• No one shares responsibility.

• Only one person shares profits.

Are shareholders necessarily involved in the day-to-day running of the business?

• No, unless elected to the Board of Directors

• Yes, always

• Only if they own more than 50% of shares

• Only if they are employees

Why might a sole trader find it difficult to source finance?

• Limited liability

• Lack of business partners

• Complicated legal requirements

• High profits

What is a disadvantage of a partnership?

• Sharing skills and knowledge

• Easier to raise finance

• Unlimited liability

• Sharing workload

What is a benefit of sharing skills and knowledge in a partnership?

• Increased liability

• Better service

• More disputes

• Slower decisions

What happens to decision making in a Limited Company (Ltd)?

• Decision making is centralized

• Decision making and profits are shared

• Only the owner makes decisions

• Decisions are made by the government

What is an advantage of having shareholders in a Limited Company (Ltd)?

• Shareholders are not allowed

• Shareholders are "invited"

• Shareholders have no influence

• Shareholders must be family members