Business Structure

A business structure involving two or more individuals is called a __________.

• Corporation tax

• Sole trader

• Limited Liability Partnership (LLP)

• Partnership

Answer explanation

A business structure involving two or more individuals is called a Partnership because it involves a legal agreement between partners to run a business together.

An LLP must be legally registered with Companies House.

• TRUE

• FALSE

The __________ is responsible for managing the day-to-day operations of a limited company.

• Managing director

• Shareholders

• Partners

• Registered address

What is a sole trader?

• A business owned by two or more people

• B) A business owned and operated by one person

• C) A large corporation

• D) A non-profit organization

Which of the following is a major advantage of being a sole trader?

• Unlimited liability

• Complete control over the business

• Easy to raise capital

• Shared responsibilities

Which business structure is characterized by limited liability for its owners?

• Sole trader

• Partnership

• Company

• Cooperative

Which business structure allows for the easiest transfer of ownership?

• Sole trader

• Partnership

• Company

• Cooperative

Why might someone choose to set up a partnership instead of a sole trader business?

• To have complete control over decisions

• To share responsibilities and combine skills with others

• To limit personal liability

• To avoid sharing profits

What is the primary disadvantage of a partnership?

• Easy to set up

• Shared decision-making

• Unlimited liability for all partners

• Flexibility in operations

Which of the following is true about companies?

• Owners have unlimited liability

• Companies can raise capital by selling shares

• They are easier to form than sole proprietorships

• They have no legal existence separate from their owners