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A level Business Ownership

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

Which of these is not a legal form of business

a)

A sole trader

b)

A partnership

c)

A private limited company

d)

A public limited partnership

2.

Which statement is true regarding a private limited company (Ltd):

a)

A small business run by two to twenty person

b)

Shares are sold on the stock market

c)

Shares are only sold to family and friends

d)

Has unlimited liability

3.

Which type of business ownership from the following has unlimited liability? 

a)

Charity

b)

Public limited company 

c)

Private Limited Company

d)

Sole trader

4.

Which of these are advantages of a private limited company

a)

limited liability

b)

shares are sold on the stock market to raise additional finance

c)

ownership still remains with friends and family

d)

Relatively easy to set up

5.

What are the disadvantages of operating as a sole trader?

a)

Unlimited liability

b)

Long hours, hard work

c)

Own boss, full control

d)

Flexible hours

6.

What is a form of business ownership in which 2 or more people jointly owns a business

a)

Sole Trader

b)

Social Enterprise

c)

Partnerships

d)

Charity

7.

What is the name of a person who owns part of a limited liability company?

a)

Stakeholder

b)

Shareholder

c)

Trust Agent

d)

Chairman

8.

An advantage of operating as a sole trader...

a)

Owner receives all profit

b)

No need to pay tax

c)

Investment from shareholders

d)

Cheaper advertising

9.

Business ownership in which 2 or more people share assets, liabilities, and profit is called what?

a)

Sole Trader

b)

Partnership

c)

Public limited company

d)

Private limted company

10.

A company with limited liability

a)

Sole Trader

b)

Partnership

c)

Public limited company

d)

Private limited company

11.

An advantage of a partnership is ...

a)

More profit for the owners

b)

Easier to recruit

c)

Shared responsibilities

d)

Unlimited liability

12.
Why does a company issue shares?
a)
To raise money that can be invested in the business
b)
To make more profit
c)
To get more owners
d)
To allow the business to be sold off
13.
Which of the following is an advantage of a private limited comapany
a)
You can sell shares openly to anybody around the world
b)
You can gain more sales as the business is well known
c)
You can choose your own shareholders that are suitable for the business
d)
They have unlimited liability
14.

Which of these is correct for a Public Limited Company?

a)

Easier to set up than a private limited company

b)

Needs to have a minimum of 10 shareholders

c)

Has unlimited liability

d)

Must publish all of their accounts to the public

15.
Which of the following is a benefit of operating as a sole trader?
a)
Autonomy
b)
Higher sales
c)
Cheaper costs
d)
Easier to run
16.
What does the term 'Capital' mean?
a)
The money made from sales
b)
The money raised to start or develop a business
c)
The money in the owners savings
d)
The money the business has used to pay for advertising
17.

True or false: If a business has unlimited liability, the owners personal possessions are at risk if the business falls into debt.

a)

True

b)

False

18.

The Document used to outline the terms and conditions of a partnership is called a (a)   of Partnership

19.

Which of the following is not a Public Limited Company

a)

Apple

b)

Alphabet

c)

IKEA

d)

McDonalds

20.

Which of the following are likely to be formed as a partnership?

a)

Solicitors

b)

Accountants

c)

Architects

d)

Leisure centre

21.

Which of the following are reasons a sole trader may move to become a private limited company?

a)

Raise additional finance

b)

Limited Liability

c)

Take on a shareholder with additional skills and experience

d)

Move into a new market

22.

Shares in a Public Limited Company are sold on the (a)   market

23.

What is the return shareholder get for investing a limited company?

a)

Dividend

b)

Profit share

c)

Financial Gain

d)

Tax return

24.

Shareholders are guaranteed a return on their investment?

a)

True

b)

False

25.

All the profits made by a limited company are returned to the shareholders.

a)

True

b)

False

26.

Sole traders operate and run the business on their own?

a)

True

b)

False

27.

Profits in a partnership are divided equally amongst the partners.

a)

True

b)

False

28.

The main aim of a Public Limited Company is usually to:

a)

Increase the number of customers

b)

Maximise the profits of the company

c)

Expand the product range to appeal to a wider target market

d)

Move into overseas markets

29.

In the first year of trading, sole traders will aim to:

a)

To become established in the market

b)

To maximise profit

c)

To eliminate the competition

d)

To breakeven

30.

Which of the following companies have unlimited liability?

a)

Partnerships

b)

Sole Traders

c)

Charities

d)

PLCS

31.

When another company tries to buy the shares of a PLC without consultation, this is called a what?

a)

Joint Venture

b)

Merger

c)

Hostile Takeover

d)

Hostile Bid

32.

What is a franchisee?

a)

The purchaser of a Business name

b)

The seller of a business name

c)

The parent company of a smaller business

d)

The name of a partner in a partnership

33.

What are the advantages of operating a franchise to the franchisee?

a)

Established name

b)

Guaranteed profits

c)

Ability to use trademarks, logos and marketing

d)

Keep all the money made

34.

The benefits to a franchisor of operating the franchise model are

a)

Revenue/royalties from the franchisee

b)

Rapid growth of the company

c)

Saturation of the market

d)

New products can be launched by the franchisee

35.

Which of the following is not advantage of operating on line?

a)

Open 24/7

b)

Access to a larger pool of customers

c)

Reduces risk

d)

Increased levels of competition