Business Ownership Quiz

Which of these is NOT a type of business ownership?

• Ice Cream Van

• Sole Trader

• Partnership
• Public Limited Company

Which of these is an advantage of being a sole trader?

• Complete control over business decisions
• Limited access to funding
• Shared decision-making with partners
• Higher tax rates than corporations

How many people can be in a business partnership?

• A maximum of 10 partners is required.
• At least 2 partners, no strict maximum limit.
• Only 1 partner is allowed.
• Partnerships can only have up to 5 partners.

What does "Unlimited Liability" mean?

• It means no responsibility for business debts.
• It refers to limited financial risk for owners.
• It indicates a fixed amount of liability for debts.
• Unlimited liability means personal responsibility for all business debts.

What is the name of the organisation that records business registration and profits in the UK?

• Business Registration Agency
• UK Trade and Investment
• Companies House
• Department for Business, Energy & Industrial Strategy

What is the name of the financial reward paid to shareholders?

• Dividend
• Stock Split
• Capital Gain
• Interest

What is the difference between income tax and corporation tax?

• Income tax is a flat rate; corporation tax is progressive.
• Income tax is only for self-employed individuals; corporation tax is for all businesses.
• Income tax is paid quarterly; corporation tax is paid annually.
• Income tax applies to individuals; corporation tax applies to companies.

True or False: Sole Traders cannot employee other people.

• True
• Sole Traders can only work alone
• Sole Traders must hire at least one employee
• False

Which of these is a disadvantage of running a Public Limited Company?

• Unlimited Liability

• Increased regulatory scrutiny and disclosure requirements.
• Lower tax rates compared to private companies.
• Easier access to funding through private investors.

An accountancy firm is most likely to take which form of business ownership?

• Sole Proprietorship
• Corporation
• Non-Profit Organization
• Partnership or Limited Liability Partnership (LLP)