Understanding Business Ownership Structures

What is a key feature of unlimited liability in business organisations?

• Owners are not personally responsible for business debts.

• Owners are personally responsible for all business debts.

• Business debts are limited to the amount invested.

• Business debts are covered by insurance.

Which of the following is a characteristic of limited liability companies?

• Owners can lose personal assets if the business fails.

• Owners' liability is limited to their investment in the company.

• Owners have unlimited control over the business.

• Owners must pay business debts from personal funds.

What is an advantage of being a sole trader?

• Limited liability.

• Shared decision-making.

• Full control over business decisions.

• Easier access to finance.

Which of the following is a disadvantage of partnerships?

• Limited liability.

• Shared responsibility for debts.

• Easier to raise capital.

• Full control over business decisions.

What is a primary feature of a co-operative?

• Owned by a single individual.

• Profits are distributed based on investment.

• Owned and run by its members for mutual benefit.

• Aims to maximise profits for shareholders.

Which of the following best describes a charity?

• Aims to make a profit for owners.

• Operates for the benefit of its members.

• Aims to provide a public benefit without profit.

• Owned by government entities.

In which scenario is a private limited company most appropriate?

• A small family-run business.

• A large multinational corporation.

• A local charity organisation.

• A sole trader looking to expand.

What is a common feature of public limited companies?

• Shares are not available to the public.

• Shares can be bought and sold on the stock exchange.

• Owners have unlimited liability.

• Limited access to capital.

Which business structure is most suitable for a start-up with high growth potential?

• Sole trader.

• Partnership.

• Private limited company.

• Co-operative.

What is a disadvantage of a public limited company?

• Limited access to capital.

• High level of regulation and scrutiny.

• Limited liability for owners.

• Easy transfer of ownership.