Entrepreneurs/Sole Traders and Partnerships Quiz

What is a reason an entrepreneur might want to start a business?

• To allow someone to become their own boss

• To fill gaps in the market

• To provide goods that people want

• To provide an income for the owner

How can a business meet consumer demand?

• By providing goods that people want

• By providing an income for the owner

• By allowing someone to become their own boss

• By providing jobs for people

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

• Easy access to capital

• Unlimited liability

• Shared decision-making

• High employee turnover

What is a key reason for the ease of starting a sole trader business?

• High initial costs

• Few regulations

• Complex tax requirements

• Need for multiple investors

What is one advantage of having a partnership in business?

• Workload can be shared, easier to take holidays

• Sole decision-making

• Limited liability

• No need for agreements

How do partners in a partnership benefit each other?

• Each partner brings different skills, to complement each other

• They compete against each other

• They work independently

• They have no influence on each other

What can personal possessions be used for in a partnership?

• To pay off any debts

• To increase profits

• To hire more employees

• To expand the business

What is a benefit of partners bringing different skills?

• Increases chance of success

• Causes conflicts

• Reduces efficiency

• Limits growth

What is an entrepreneur?

Two differences between a sole trader and a partnership?