Types of Organizations Quiz

What is a sole trader?

• A business owned by one person

• A business owned by two people

• A business owned by a company

• A business owned by a group of friends

What is the simplest form of trading structure?

• Partnership

• Corporation

• Sole trader

• Franchise

Who runs the business in a sole trader structure?

• A group of managers

• The sole trader themselves

• A board of directors

• A team of employees

What is one way a sole trader can fund their business?

• By selling company shares

• Through loans or savings

• By issuing bonds

• By receiving government grants

What does "unlimited liability" mean for a sole trader?

• The business can only lose a limited amount of money

• The sole trader is not responsible for any debts

• The sole trader is responsible for all business debts

• The business is protected from bankruptcy

Who earns all the money and profits in a sole trader business?

• The government

• The employees

• The sole trader

• The shareholders

What happens if a sole trader's business fails?

• The government pays the debts

• The sole trader can be bankrupt

• The business continues without debts

• The employees take over the business

What does a sole trader have complete control over?

• The weather

• Their business and assets

• Other people's businesses

• The government

What must a sole trader do annually?

• Go on vacation

• File tax returns

• Buy new equipment

• Change their business name

What is one thing a sole trader does not have to do?

• Reveal their affairs

• Pay taxes

• Hire employees

• Sell products