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WorksheetsA level Business Ownership
Total questions: 35
Worksheet time: 18mins
Which of these is not a legal form of business
A sole trader
A partnership
A private limited company
A public limited partnership
Which statement is true regarding a private limited company (Ltd):
A small business run by two to twenty person
Shares are sold on the stock market
Shares are only sold to family and friends
Has unlimited liability
Which type of business ownership from the following has unlimited liability?
Charity
Public limited company
Private Limited Company
Sole trader
Which of these are advantages of a private limited company
limited liability
shares are sold on the stock market to raise additional finance
ownership still remains with friends and family
Relatively easy to set up
What are the disadvantages of operating as a sole trader?
Unlimited liability
Long hours, hard work
Own boss, full control
Flexible hours
What is a form of business ownership in which 2 or more people jointly owns a business
Sole Trader
Social Enterprise
Partnerships
Charity
What is the name of a person who owns part of a limited liability company?
Stakeholder
Shareholder
Trust Agent
Chairman
An advantage of operating as a sole trader...
Owner receives all profit
No need to pay tax
Investment from shareholders
Cheaper advertising
Business ownership in which 2 or more people share assets, liabilities, and profit is called what?
Sole Trader
Partnership
Public limited company
Private limted company
A company with limited liability
Sole Trader
Partnership
Public limited company
Private limited company
An advantage of a partnership is ...
More profit for the owners
Easier to recruit
Shared responsibilities
Unlimited liability
Which of these is correct for a Public Limited Company?
Easier to set up than a private limited company
Needs to have a minimum of 10 shareholders
Has unlimited liability
Must publish all of their accounts to the public
True or false: If a business has unlimited liability, the owners personal possessions are at risk if the business falls into debt.
True
False
The Document used to outline the terms and conditions of a partnership is called a (a) of Partnership
Which of the following is not a Public Limited Company
Apple
Alphabet
IKEA
McDonalds
Which of the following are likely to be formed as a partnership?
Solicitors
Accountants
Architects
Leisure centre
Which of the following are reasons a sole trader may move to become a private limited company?
Raise additional finance
Limited Liability
Take on a shareholder with additional skills and experience
Move into a new market
Shares in a Public Limited Company are sold on the (a) market
What is the return shareholder get for investing a limited company?
Dividend
Profit share
Financial Gain
Tax return
Shareholders are guaranteed a return on their investment?
True
False
All the profits made by a limited company are returned to the shareholders.
True
False
Sole traders operate and run the business on their own?
True
False
Profits in a partnership are divided equally amongst the partners.
True
False
The main aim of a Public Limited Company is usually to:
Increase the number of customers
Maximise the profits of the company
Expand the product range to appeal to a wider target market
Move into overseas markets
In the first year of trading, sole traders will aim to:
To become established in the market
To maximise profit
To eliminate the competition
To breakeven
Which of the following companies have unlimited liability?
Partnerships
Sole Traders
Charities
PLCS
When another company tries to buy the shares of a PLC without consultation, this is called a what?
Joint Venture
Merger
Hostile Takeover
Hostile Bid
What is a franchisee?
The purchaser of a Business name
The seller of a business name
The parent company of a smaller business
The name of a partner in a partnership
What are the advantages of operating a franchise to the franchisee?
Established name
Guaranteed profits
Ability to use trademarks, logos and marketing
Keep all the money made
The benefits to a franchisor of operating the franchise model are
Revenue/royalties from the franchisee
Rapid growth of the company
Saturation of the market
New products can be launched by the franchisee
Which of the following is not advantage of operating on line?
Open 24/7
Access to a larger pool of customers
Reduces risk
Increased levels of competition
