Business Studies - Exam Prep

The best definition of a sole trader form of business organisation is:

• the business only employs one person

• the business is owned by one person

• the firm has a single customer

• there is a single firm in the industry

One of the claimed advantages of a sole trader business is that:

• owners have limited liability

• shares can be sold to raise capital

• decisions and responsibilities can be shared

• the owner has complete control

One of the disadvantages of a sole trader business is that:

• capital is limited to owner’s savings and bank loans

• decisions take too long to make

• as they are government owned there is no profit motive

• the owners may disagree

One of the advantages of a partnership form of business organisation is that:

• all partners always have limited liability

• shares can be sold on the Stock Exchange

• the business survives the death of the partners

• the business has access to more capital than a sole trader

Carrying out staff training is done by ...

• Human Resources

• Marketing

... is responsible for organizing conferences and trade events.

• Finance

• Marketing

The ... department is in charge for paying local and national taxes.

• Sales

• Finance

Which of the following businesses is likely to have the most amount of capital

• Partnership

• Sole Trader

Number of partners in a partnership business are.....

• Unlimited

• 200 maximum

• 2 to infinite

• 2-20 partners

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership

• Sole Proprietorship

• Franchise

• Private limited company