Business Structures and Entrepreneurship Quiz

What is a key advantage of a sole trader?

• Shared responsibilities

• Access to large capital

• Full control over decision-making

• Limited liability

Which of the following is a disadvantage of a partnership?

• Complex to set up

• Unlimited liability for general partners

• Limited to 50 shareholders

• Must disclose financials publicly

What is a benefit of a private company (Pty Ltd)?

• No reporting requirements

• Separate legal entity

• Unlimited liability

• Easy to set up

Which business structure allows raising large amounts of capital by selling shares?

• Public Company

• Private Company

• Partnership

• Sole Trader

What is a characteristic of a social enterprise?

• Focuses solely on profit

• Combines commercial activity with social goals

• Limited to 50 shareholders

• Has unlimited liability

What is a key characteristic of an entrepreneur?

• Follows existing ideas

• Avoids risks

• Innovative

• Prefers working alone

What is a disadvantage of a sole trader?

• Unlimited liability

• Complex to register

• Shared decision-making

• Limited liability

Which business structure is described as having 'perpetual existence'?

• Private Company

• Partnership

• Sole Trader

• Public Company

What is a disadvantage of a public company?

• No need to disclose financials

• Simple to set up

• Expensive and heavily regulated

• Limited liability for shareholders

Which business structure is limited to 50 non-employee shareholders?

• Sole Trader

• Partnership

• Private Company

• Public Company