Business Structures Quiz

What type of organization is a Cooperative Society?

• Non-profit organization

• Government agency

• For-profit organization

• Franchise

What is the main benefit of a Sole Trader?

• Limited liability

• Access to public funding

• Shared decision-making

• Complete control over the business

What is a key characteristic of Partnerships?

• No shared profits

• Independent management

• Unlimited liability for all partners

• Limited decision-making

What do shareholders receive from a Limited Company?

• Management positions

• Royalties

• Salaries

• Dividends

What is the role of a board of directors in a Limited Company?

• Provide technical support

• Handle customer service

• Make decisions for the company

• Manage daily operations

What type of liability do shareholders have in a Limited Company?

• No liability

• Joint liability

• Limited liability

• Unlimited liability

What is a characteristic of a Private Limited Company (Ltd)?

• Can sell shares publicly

• Can sell shares to a maximum of 50 people privately

• Has unlimited shareholders

• Is managed by the government

What is the main feature of a Franchising arrangement?

• Franchisee has unlimited liability

• Franchisor grants rights to use brand name

• Franchisee operates independently

• No fees involved

What does a Hierarchical structure in an organization resemble?

• Flat organization

• Circular organization

• Pyramid-shaped structure

• Grid-based organization

What is a key benefit of a Functional structure?

• Quick decision-making

• Clear chain of command

• Focus on specific projects

• Segmentation by products