Business Ownership Quiz

What is a characteristic of a private limited company?

• Shares can be sold to the general public

• It is always a large business

• Owners have unlimited liability

• Owners have limited liability

Which of the following is an advantage of a public limited company?

• Limited media coverage

• Shares can be bought and sold easily

• Less regulation than a private limited company

• No risk of takeover

What does 'Ltd' signify in a company name?

• The company is a private limited company

• The company has unlimited liability

• The company is a public limited company

• The company is a not-for-profit organization

What is a disadvantage of a private limited company?

• It can be very time consuming to set up

• Shares can be sold to the general public

• It has unlimited liability

• It cannot improve the status of the business

Who are the owners of a public limited company?

• The government

• The original founders only

• Shareholders

• The board of directors

What is a flotation in business terms?

• When a company merges with another

• When a company is liquidated

• When a private limited company becomes public

• When a public limited company becomes private

Which of the following is a disadvantage of a public limited company?

• No media coverage

• Limited liability

• More regulation than a private limited company

• Shares cannot be sold

What is an advantage of a private limited company?

• Shares can be sold on the stock exchange

• Unlimited liability

• No paperwork required

• New shareholders must be invited

What is a share in business terms?

• A loan given to a company

• A percentage or portion of a company

• A type of business liability

• A company asset

What is a potential risk for public limited companies?

• They have no media coverage

• They are at risk of being taken over

• They have no shareholders

• They cannot sell shares