Sources of Finance Quiz

What is one disadvantage of a sole trader?

• Unlimited liability

• Limited liability

• Shared decision-making

• High start-up costs

What is a common requirement for starting a franchise?

• Paying an initial franchise fee

• No need for any investment

• Complete independence from the franchisor

• No need to follow any guidelines

What is one type of business ownership mentioned in the document?

• Partnership

• Cooperative

• Public limited company

• Joint venture

Which type of business ownership is characterized by having limited liability?

• Sole trader

• Partnership

• Private limited company

• Cooperative

Which type of business ownership involves two or more people sharing responsibilities?

• Sole trader

• Partnership

• Private limited company

• Corporation

What is unlimited liability?

• A situation where the business and owner are legally separate

• A situation where the owner is not liable for business debts

• A situation where the business and owner are not legally separate

• A situation where the business has limited liability

What is one potential advantage of starting a business as a partnership?

• Limited liability

• Shared responsibilities

• Higher taxes

• More regulations

Why might owners of a private limited company not be involved in running the business?

• They are always involved

• They prefer to work in partnerships

• They may hire managers to run the business

• They lack interest in business operations

What is one of the key benefits of a franchise?

• Access to an established business model

• Freedom to create a new brand

• No need for initial investment

• Complete independence from the brand

What is required to operate a franchise?

• Buying the rights to use the business model

• Creating a new business model

• Selling the existing business model

• Operating without any rights