WorksheetsOCR GCSE Business (1-9) Business Ownership
Total questions: 20
Worksheet time: 11mins
A sole proprietor has to share the profits made by the business. True or False?
True
False
Select TWO true statements that relate to a sole trader. (Select two answers)
Sole traders have limited liability
Sole traders get to make all their own decisions about the business
Sole traders may find it harder to raise funds for the business
Sole traders usually get more holidays than partners or directors
Why may an entrepreneur prefer to set up a business as a partnership?
The entrepreneur would get to make all the decisions
They entrepreneur would get to keep all the profit
The business would benefit from a greater range of skills and knowledge
The business would make more money quicker
Partnerships are set up by....
One person
Two or more people
Ten or more people
Twenty or more people
Which of the following are types of limited company? (Select 2 answers)
Personal
Private
Public
Premier
A limited company is owned by
Shareholders
Stakeholders
Directors
Employees
Disadvantage of a Sole trader:
Expensive to create
Hard to employ people
Doesn't generate much profit
Unlimited liability
An advantage of operating as a sole trader...
Owner receives all profit
No need to pay tax
Investment from shareholders
Cheaper advertising
A company with limited liability
Sole Trader
Partnership
Public limited company
Private limited company
True or false: If a business has unlimited liability, the owners personal possessions are at risk if the business falls into debt.
True
False
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 type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which of the following is an advantage of operating a large established business as a public limited company?
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
Which of the following is a disadvantage of being a public limited company?
The business is at risk of takeover
Large sums of money can be raised
Unlimited liability
Limited liability
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
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