Business Organizations Quiz

Which of the following business organizations has unlimited liability for its owner(s)?

• Private Limited Company

• Public Limited Company

• Sole Trader

• Public Sector Organization

A key advantage of a Partnership over a Sole Trader is:

• Easier to set up

• Unlimited liability

• More capital can be raised

• Owner keeps all profits

What is the main characteristic that distinguishes a Company from a Sole Trader or Partnership?

• It aims to make a profit.

• It has more than one owner.

• It is a separate legal entity.

• It sells goods or services.

Shares of a Public Limited Company (PLC) can be bought and sold by:

• Only the original founders.

• Only friends and family.

• The general public on a stock exchange.

• Only existing employees of the company.

Which of the following is typically the primary aim of a business operating in the Private Sector?

• To provide essential services to all citizens.

• To improve the welfare of society.

• To make a profit for its owners/shareholders.

• To be funded solely by government taxes.

Which of these is an example of a Public Sector organization in the Maldives?

• A private resort

• Bank of Maldives

• STELCO (electricity provider)

• Your local grocery store

A major disadvantage of a Sole Trader business is:

• Difficulty in making quick decisions.

• The owner must share profits with others.

• Unlimited liability for the owner.

• Complex legal formalities to set up.

Which document outlines the roles, responsibilities, and profit shares for owners in a Partnership?

• Memorandum of Association

• Articles of Association

• Partnership Agreement

• Business Plan

If a company's shareholders have limited liability, what does this mean?

• They are only liable for the company's debts up to the amount they invested in shares.

• They are personally responsible for all the company's debts.

• They can only sell their shares to a limited number of people.

• The company can only borrow a limited amount of capital.

The funding for Public Sector organizations primarily comes from:

• Share sales to the public.

• Private investment and bank loans.

• Taxes and government revenue.

• Customer fees for services (alone).