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WorksheetsSole traders and partnerships
Total questions: 25
Worksheet time: 10mins
Name
Class
Date
1.
A sole trader is
a)
a business with one employee
b)
a business selling one product
c)
a business with one owner
d)
a business with one shop/office
2.
The term for money invested in a business is
a)
finance
b)
capital
c)
investment
d)
shares
3.
Profit is
a)
the money that the business makes from selling its products
b)
the money that the business receives from the bank
c)
the money that the owners use to start up the business
d)
the money the business makes once all costs are paid
4.
A sole trader has responsibility for
a)
preparing the accounts of the business
b)
all aspects of their business
c)
selling the products
d)
completing spreadsheets
5.
An objective of a sole trader is
a)
to sell more shares on the stock market
b)
to increase the dividend given to investors
c)
to survive in tough economic times
d)
to maximise the amount of loans they can receive
6.
Unlimited liability means
a)
the business is closed down because of too much debt
b)
the owners' personal possessions can be used to cover the firm's debts
c)
the bank will refuse to give loans to the business
d)
the business will struggle to attract investors
7.
An advantage of being a sole trader is
a)
you can take time off whenever you want
b)
you can grow your business really easily
c)
you can receive large amounts of finance from loans
d)
you receive all the firm's profit for yourself
8.
A disadvantage of being a sole trader is
a)
a heavy workload creates stress and pressure
b)
a second opinion on important decisions is always available
c)
arguments and disagreements can harm the progress of the business
d)
the owner gets a smaller share of the profits
9.
A grant is a source of finance given by
a)
the bank
b)
the local council
c)
the stock exchange
d)
the First Minister
10.
An advantage of a business receiving a grant is
a)
the interest rates are very low
b)
they can apply for several grants every year
c)
it is usually a very large amount
d)
they do not have to pay it back
11.
Reinvested profit is when
a)
some of the profit is kept in the firm rather than being given to the owners
b)
the owners share of the profits is increased
c)
the value of the business increases
d)
the firm can attract more investors because the profits are high
12.
A partnership has between 2 and 20
a)
employees
b)
shareholders
c)
owners
d)
customers
13.
A partnership arrangement is commonly found in
a)
the fire service
b)
dentists' surgeries
c)
local councils
d)
supermarkets
14.
Which of the following is a partnership business?
a)
Morrisons plc
b)
Marks and Spencer plc
c)
Blair and Bryden
d)
Scotrail
15.
Which of the following is NOT included in a Deed of Partnership?
a)
How the profit is to be split between the partners
b)
The name of the partnership's accountant
c)
The responsibilities of each partner
d)
The date the partnership started up
16.
Which of the following is NOT a reason why a Deed of Partnership is needed?
a)
To prevent arguments and disputes
b)
To ensure each partner knows what they are responsible for
c)
To give to employees of the firm so they know what their job includes
d)
It is a requirement by law
17.
It is easier to raise finance in a partnership because
a)
the partners have more personal wealth than a sole trader
b)
all the partners will invest a certain amount in the business
c)
the bank will give a partnership lower interest rates for all loans
d)
partnerships are the only type of business that can receive grants
18.
Which of the following is an advantage of being in a partnership?
a)
Ideas and decision making can be shared
b)
The most senior partner has responsibility for running the business
c)
Partners can have responsibility for many different areas of the business
d)
Each partner gets the same share of the profits
19.
What happens if a partner decides to leave the business?
a)
The other partners continue in the existing business
b)
The partnership is dissolved and reformed
c)
The partner who leaves is given compensation
d)
The partnership has to find a new lawyer
20.
A mortgage is a source of finance needed if the firm is buying
a)
equipment
b)
premises
c)
shares
d)
stock
21.
The name given to valuable items that the business owns, such as machinery and equipment, is
a)
stock
b)
valuables
c)
wealth
d)
assets
22.
A sole trader and partnership can expand by
a)
renovating their premises
b)
buying more shares in the business
c)
opening another branch
d)
making employees redundant
23.
The sharing of profits in a partnership is based on
a)
the age of each partner
b)
the experience of each partner in business
c)
the number of years each individual has been a partner
d)
the amount of capital invested by each partner
24.
The term 'interest' is
a)
an enquiry from someone who wants to join the partnership
b)
the extra amount charged by the bank when they lend to a firm
c)
the amount of bonus given to each employee
d)
the tax that firm's have to pay when they sell goods
25.
Which of the following is NOT an impact of partners arguing and disagreeing with each other?
a)
There is a bad working atmosphere in the partnership
b)
Less work is completed in the partnership
c)
Bad decisions are made in the partnership
d)
All partners decide to invest more capital in the business
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