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N5 Business - Sole Trader

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What are the 3 sectors of economy?

a)

Private sector

b)

First sector

c)

Public sector

d)

Third sector

2.

Which types of businesses are included within the private sector?

a)

Charities, Social Enterprises, Youth Clubs, Local Authorities

b)

Partnership, Police, Schools, Charities

c)

Sole trader, Partnership, LTD, PLC

d)

Sole trader, LTD, PLC, Voluntary

3.

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

4.

What does 'unlimited liability' mean?

a)

If the business fails, you will not lose personal possessions

b)

If the business fails, you will lose personal possessions

5.

A sole trader has responsibility for...

a)

Preparing the accounts for the business

b)

Selling the products

c)

All aspects of their business

d)

Completing Spreadsheets

6.

An objective of a sole trader is...

a)

To sell more shares on the stock market

b)

To survive in tough economic times

c)

To increase the dividend given to investors

d)

To maximise the amount of loans they can receive

7.

An advantage of being a sole trader is...

a)

You can take time off whenever you want

b)

You can receive large amounts of finance from loans

c)

You can grow your business really easily

d)

You receive all of the business' profit for yourself

8.

A disadvantage of being a sole trader is...

a)

You must discuss your ideas with other partners in the business

b)

You have unlimited liability

c)

You can't get any help from banks

d)

It takes a long time to make any important decisions

9.

An example of a sole trader business is...

a)

Morrisons

b)

Amazon

c)

Hairdresser

d)

Teacher

10.

How does a sole trader fund their business?

a)

They rely on their partner to invest money

b)

They use their own savings and loans

c)

They always get offered a free grant

d)

They sell shares for their business