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WorksheetsForms of Business Ownership
Total questions: 20
Worksheet time: 9mins
A business with one owner is known as a:
Company
Sole trader
Partnership
A business run by 2-20 people and has unlimited liability is known as a:
Company
Sole trader
Partnership
The two forms of business ownership with unlimited liability are:
Sole trader
Public company
Partnership
Private company
Advantages of a sole trader are:
Limited liability
The owner makes all the decisions
The owner takes all the profit
Can raise substantial capital
Advantages of a partnership are:
The partners split the profit
Unlimited liability
Raise more capital than a sole trader
Share the workload
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?
Profit is shared
Financial accounts are kept private
Limited liability
Unlimited liability
Which of the following is an advantage of operating a large established business as a corporation?
Shares can be sold to the public to raise additional finance
Financial accounts are published
Shares can only be sold to invited investors to raise finance
Owners have unlimited liability
A private held coporation may change into a public corporation because it wants:
Limited liability
To raise additional finance
Unlimited liability
To avoid takeover
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole proprietorship
Partnership
Privately Held Corporation
Corporation
Two Brothers Pizza would most likely show which type of ownership
Partnership
Corporation
Stock and Bonds
Single Ownership
What form of business ownership is subject to the least taxation and government regulation?
Sole Proprietorship
Limited Partnership
Family owned business
Corporation
Important aspects of a corporation, such as the
name of the firm, information about the stock issued,
and a description of the firm’s operations, are
contained in a:
a) mission.
b) policy.
c) charter.
d) plan.
e) venture.
The members of the board of directors of a corporation
are chosen by the corporation’s:
a) president and chief executive officer.
b) creditors.
c) general partners.
d) stockholders.
e) charter members.
When ownership of a small corporation is restricted
to a small group of investors, it is:
a) publicly held.
b) government owned.
c) bureaucratic.
d) privately held.
e) perfectly competitive.
