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Worksheets

Future business owners

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Why is business so important?

a)

A way to get most goods and services; a way of making money

b)

Create job opportunities

c)

both a and b

d)

None of the above

2.

A sole trader:

a)

works for someone else

b)

controls and manages the business as well is liable for all aspects of the business

c)

does not decide anything

3.

Which of the following best describes the term limited liability? If the business fails:

a)

Personal possessions of the owner can be taken to pay any debts

b)

The owner is personally liable for all the debts of the business

c)

There is no limit on the amount the owner has to pay to settle debts

d)

The owner only loses the amount invested in the business

4.

Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?

a)

Sole trader

b)

Ltd

c)

Partnership

d)

Pty Ltd

5.

Which of the following is a drawback for an sole proprietor setting up a business as a sole trader?

a)

Limited liability

b)

Unlimited liability

c)

Financial accounts are kept private

d)

Profit is shared

6.

Which of the following is a disadvantage of setting up a business as a partnership?

a)

more ideas generated

b)

Shared workload

c)

Shared losses

d)

Shared profits

7.

Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?

a)

Pty Ltd

b)

Sole trader

c)

Partnership

d)

Ltd

8.

This type of organisation is a legal entity separate from its owners.

a)

Proprietary Limited and Limited company

b)

Franchise

c)

Partnership

d)

Sole proprietorship

9.

This type of business is a contractual agreement with a parent company to sell its products/services in an area.

a)

Proprietary Limited company

b)

Sole Proprietorship

c)

Franchise

d)

Partnership

10.

Law firms and doctor's offices are examples of.....

a)

Franchises

b)

Partnerships

c)

Sole Proprietorship

d)

Companies