Business Organizations Quiz

What is a common characteristic of formal organizations?

• Unlimited liability

• Having a name

• No legal personality

• No objective

Which type of business organization is owned and managed by one person?

• Partnership

• Sole proprietorship

• Cooperative

• Public limited company

What is a key feature of partnerships?

• Unlimited liability

• Continuous existence

• Legal personality

• Compulsory registration

Which type of company has limited liability for its shareholders?

• Unlimited liability company

• Public limited company

• Sole proprietorship

• Partnership

What is the main purpose of a franchise agreement?

• To register a new company

• To dissolve a partnership

• To outline the terms between franchisor and franchisee

• To establish a legal entity

What is a disadvantage of sole proprietorship?

• Limited liability

• Shared profits

• Unlimited liability

• Continuous existence

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

• Shares can be sold to the general public

• Managed by a single owner

• Limited to 50 shareholders

• No legal entity

What is the primary motive of cooperatives?

• Market dominance

• Social welfare

• Profit maximization

• Individual gain

What is a key feature of public sector businesses?

• Owned by private individuals

• No government involvement

• Operated for public benefit

• Unlimited liability

What is the main purpose of business combinations?

• To increase competition

• To share resources and reduce risk

• To reduce market share

• To eliminate all partnerships