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Forms of organisations

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

A business with one owner is known as a:

a)

Company

b)

Sole trader

c)

Partnership

2.

The two forms of business ownership with unlimited liability are:

a)

Sole trader

b)

Public company

c)

Private company

d)

Patnership

3.

Two advantages of a partnership are:

a)

The partners split the profit

b)

Unlimited liability

c)

Raise more capital than a sole trader

d)

Share the workload

4.
What is the most common form of business ownership?
a)
Corporation
b)
Company
c)
Sole Proprietorship
d)
LLC
5.

This type of business is subject to many more laws and are more difficult to form.

a)

Proprietorship

b)

Partnership

c)

Joint Stock Company

6.
This type of organization is a legal entity separate from its owners.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
7.

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

8.

Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?

a)

Profit is shared

b)

Financial accounts are kept private

c)

Limited liability

d)

Unlimited liability

9.

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)

Sole proprietorship

b)

Partnership

c)

Privately Held Corporation

d)

Corporation

10.

Two Brothers Pizza would most likely show which type of ownership

a)

Partnership

b)

Corporation

c)

Stock and Bonds

d)

Single Ownership

11.

What form of business ownership is subject to the least taxation and government regulation?

a)

Sole Proprietorship

b)

Limited Partnership

c)

Family owned business

d)

Corporation

12.

This type of business is owned by many people called shareholders.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

13.
Nike, Google and Apple are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
14.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
15.
Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise