Business Effectiveness Quiz

Which of the following is essential for business effectiveness?

• Clear communication

• Ignoring market trends

• High employee turnover

• Limited product range

How does a sole trader differ from a partnership?

• Sole traders have multiple owners

• Sole traders have a single owner

• Partnerships have a single owner

• Partnerships are government-owned

What can be a stressful aspect of being a sole trader?

• Making all the decisions

• Having too much free time

• Sharing responsibilities

• Receiving too much help

What is a workload-related disadvantage of being a sole trader?

• Light workload

• Heavy workload

• No workload

• Shared workload

Which of the following is an example of a partnership?

• A sole trader

• A corporation

• Doctors, solicitors, or vets

• A government agency

What is the purpose of a Partnership Agreement?

• To set out how the partnership is run and how profits are divided

• To register the business with the government

• To hire employees

• To sell the business

What type of business structure involves more than one owner?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

What is a characteristic of private limited companies (Ltd)?

• Can raise funds from the general public

• Shares are listed on the stock exchange

• Can raise funds from friends and family

• Cannot raise funds from investors

What is the liability of shareholders in a limited company limited to?

• The company's total debt.

• The company's total assets.

• The value of their investment into the company's shares.

• The company's annual profit.

What is a benefit of limited liability for shareholders?

• They are responsible for all company debts

• They are not personally responsible for company debts

• They must pay all company taxes

• They have no say in company decisions