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WorksheetsUnit 1 - AOS 2 Internal
Total questions: 13
Worksheet time: 7mins
A busy street is more important for a retailer than a wholesaler
True
False
An advantage of starting a business from scratch is...
profits are gained after a short duration of time
you only need to use a small amount of debt
you receive support from a successful franchisor
greater independence and control over the planning
What is the main disadvantage of buying an established business?
A proven track record makes it easier to obtain finance
Stock and capital resources has already been acquired and is ready for sale or use
A good business history increases the likelihood of business success and goodwill
Can be hard to assess the value of goodwill, with
the chance that the new owner will pay more than the
goodwill is worth
What are the characteristics of a business partnership?
A partnership can only be incorporated
Unlimited shareholders can invest into the partnership
Partnerships can have from 2 to 20 partners
All partnership businesses are not liable for costs or debt
What is a capital resource?
timber, wealth, fresh water and mineral deposits
Human physical and mental effort, skills or leadership used
Human- made items used in the process of production
all of the above
What is an example of a source of business finance
financial institutions
family or friends
crowd sourcing
All of the above
Bringing capital resources into the business is not classed as equity.
True
False
If a business name has "PTY LTD" in it, what legal structure has it used?
Sole Trader
Unincorporated partnership
Private company
Public company
Based on this business's name, which legal structure would this business used? "Rowland & Chris Plumbing"
Sole trader
Partnership
Public company
Private company
What is the advantage of an online business model?
Face to face customer interaction is possible
Customers trust purchasing online
Online fraud isn't a concern
global customer base and world wide access to customers
What are the disadvantages of a franchise business model?
far less independence
high startup costs and fees
can judged by the reputation or performance of other franchisees
all of the above
Which business model is a combination of a physical store and online store?
Bricks and mortar
Bricks and clicks
Online store
Manufacturing warehouse
What are the benefits of an incorporated partnership or company?
the company has a separate legal identity to its owners, who are now known as shareholders
with limited liability companies, the most money that a shareholder can lose is the amount that they paid for their shares
If the company goes into liquidation, the shareholders cannot be forced to sell their personal assets to pay for the debts of the business
All of the above
