Business Structure

A business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities.

• Sole trader

• Partnership

A business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits.

• Sole trader

• Partnership

It comprises businesses owned and controlled by individuals or groups of individuals.

• Public sector

• Private sector

The only liability – or potential loss – a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder.

• Private limited company

• Limited liability

• Public limited company

Which of the following is NOT a characteristic of a partnership?

• Direct control over business operations

• Public trading of shares

• Shared ownership among multiple individuals

• Close-knit relationship among partners

Another term for an individual owner who determines policies and has the last say in decision making is a:

• business partner

• sole proprietor

• stockholder

• manager

What type of business structure is a law firm typically?

• Partnership

• Non-profit organization

• Sole proprietorship

• Corporation

In a partnership, who has the ownership of the firm?

• General public

• Government entities

• Partners

• External investors

What is a corporation?

• A small business owned by one person

• An organization with the legal rights of a person and which many persons may own

• A non-profit organization

• A government agency

A limited company, often a large business, with the legal right to sell shares to the general public – share prices are quoted on the national stock exchange.

• Public limited company

• Private limited company