Types of Business Ownership Quiz

Finn and Emiliya are discussing starting a small business together in the UK. They want to know which of the following is the simplest form of business ownership available to them?

• Partnership

• Sole trader

• Private limited company (Ltd)

• Public limited company (Plc)

Finn and Emiliya are discussing different types of businesses. Which type of business must have its shares traded on the London Stock Exchange?

• Sole trader

• Partnership

• Private limited company (Ltd)

• Public limited company (Plc)

Emiliya is considering different business structures for her new bakery. In which business structure would Emiliya have unlimited liability?

• Private limited company (Ltd)

• Public limited company (Plc)

• Sole trader

• None of the above

Bella and Lexi are considering starting a business together. They are deciding between forming a partnership or setting up a private limited company (Ltd). Which of the following is a key advantage of a private limited company (Ltd) over a partnership?

• Shares can be sold to the public

• Limited liability for owners

• No need to register with Companies House

• Unlimited liability for owners

Henry, Sholto, and Lexi run a business together as a partnership. Who is responsible for the debts of their partnership?

• Only the managing partner

• All partners equally

• Only the partner who caused the debt

• The government

Liv and Finn are discussing different types of businesses. They notice a company called "GreenTech Ltd" and wonder what type of business is most likely to have "Ltd" after its name. Which type is it?

• Sole trader

• Partnership

• Private limited company

• Public limited company

Sholto, Finn, Emiliya, Liv, and Henry are interested in starting a public limited company (Plc) in the UK. What is the minimum number of shareholders required for them to legally form the company?

• 1

• 2

• 5

• 7

Lexi is starting her own small bakery business as a sole trader. Which of the following is NOT a characteristic of her business?

• Keeps all profits

• Unlimited liability

• Can sell shares to raise capital

• Makes all decisions

Bella and Emiliya want to open a small family-run bakery together. Which business structure is most suitable for them?

• Public limited company (Plc)

• Private limited company (Ltd)

• Partnership

• Sole trader

Bella and Finn are considering turning their successful business into a public limited company (Plc). Which of the following is a disadvantage they should be aware of?

• Limited liability

• Can raise large amounts of capital

• Must publish financial accounts

• Shares can be traded on the stock exchange