S3 BM Types of Organisation (PC 2 Revision)

Who typically owns private sector organisations?

• Government agencies

• Private individuals

• Non-profit organisations

• Public corporations

How are private sector organisations usually controlled?

• By government officials

• By a board of directors or the owners

• By public votes

• By the partners

How are private sector organisations primarily funded?

• Through government grants

• Through personal investment, loans, and profits

• Through donations

• Through taxes

What is a sole trader?

• A business owned by multiple people

• A business owned and controlled by one person

• A large corporation

• A government entity

What type of liability do sole traders have?

• Limited liability

• No liability

• Unlimited liability

• Shared liability

Which of the following is a common example of a sole trader?

• A multinational company

• A window cleaner

• A public school

• A non-profit organisation

Who makes the decisions in a sole trader business?

• A board of directors

• The government

• The owner

• The employees

What is one advantage of setting up a sole trader business?

• It requires complicated legal documents.

• Decisions must be discussed with partners.

• The owner keeps all profits.

• It is difficult to set up.

Why can decisions be made quickly in a sole trader business?

• The owner must consult with a board.

• The owner does not have to discuss or compromise.

• Legal documents are required.

• Profits are shared among partners.

Which of the following is NOT an advantage of a sole trader?

• Easy to set up.

• Owner keeps all profits.

• Requires complicated legal documents.

• Quick decision-making.