GCSE Business 1.4 Quiz

Which of the following best describes limited liability?

• Personal possessions of the owner can be taken to pay debts

• The owner is personally liable for all debts

• There is no limit on the amount the owner has to pay

• The owner only loses the amount invested in the business

What type of business has unlimited liability for all owners?

• Sole trader

• Partnership

• Private limited company

• Public limited company

A person wants a quick, easy, and inexpensive way to start a business. What is the best option?

• Sole trader

• Partnership

• Private limited company

• Franchise

What is an advantage of operating as a private limited company?

• Easier to raise finance by selling shares

• Owners have unlimited liability

• Quick and easy to set up

• Partners can provide specialist skills

The agreement for one business to trade under another’s name is called:

• Sole trader

• Partnership

• Private limited company

• Franchise

A franchisor receives an 8% royalty from two new franchises. If total revenue over 3 years is £220,000, how much does the franchisor get?

• £3,600

• £17,600

• £35,200

• £220,000

What is always a disadvantage of a partnership compared to a sole trader?

• Shared losses

• Shared workload

• Shared profit

• Shared responsibility

Which type of business is most likely to sell shares to invited investors?

• Sole trader

• Partnership

• Private limited company

• Business with unlimited liability

Why have many high street travel agents closed due to the internet?

• Competitors have become more important

• Raw materials are less important

• Labour has become more important

• Customers have become less important

What is the main factor for a small barber shop’s location?

• Proximity to the market

• Labour

• Raw materials

• Competitors