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Forms of Business Ownership

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

A sole trader is owned by...

a)

A franchisee

b)

2 or more people

c)

One person

d)

Shareholders

2.

A partnership is owned by...

a)

A franchisee

b)

2 or more people

c)

One person

d)

Shareholders

3.

A Private Limited company is owned by...

a)

A franchisee

b)

2 or more people

c)

One person

d)

Shareholders

4.

A public limited company is owned by...

a)

Shareholders

b)

Two or more owners

c)

One person

d)

A franchisee

5.

What does the word 'private' in Private Limited Company refer to?

a)

The fact that all their finances are private

b)

The fact that shares can only be sold with the consent of other shareholders

c)

The fact that nobody knows about their business

6.

True or False: Shares of a Public Limited Company are sold on the stock market

a)

True

b)

False

7.

True or false: Shares of a Private Limited Company are sold on the stock market

a)

True

b)

False

8.

All decisions are made by one person and that person also keeps all the profit is a feature of which form of business ownership?

a)

Partnership

b)

Sole Trader

c)

Private Limited Company

d)

Franchise

9.

Decision making can be slow because there are often lots of shareholders is a disadvantage to which form of ownership?

a)

Franchise

b)

Public Limited Company

c)

Sole trader

d)

Partnership

10.

Which source of finance is available to Limited Companies but is not available to sole traders or partnerships?

a)

Loans

b)

Sale of shares

c)

Money from friends and family

11.

What does unlimited liability mean?

a)

The shareholders and the business are separate which means that if the business fails, the shareholders personal possessions and assets are protected.

b)

The business and the owner are not separate which means that if the business fails, the owners personal possessions and assets are at risk of being taken to recover debt.

12.

What does limited liability mean?

a)

The shareholders and the business are separate which means that if the business fails, the shareholders personal possessions and assets are protected.

b)

The business and the owner are not separate which means that if the business fails, the owners personal possessions and assets are at risk of being taken to recover debt.

13.

Which 2 of these forms of business ownership carry unlimited liability?

a)

Private Limited Company

b)

Sole Trader

c)

Public Limited Company

d)

Partnership

14.

Which 2 of these forms of business ownership carry limited liability?

a)

Private Limited Company

b)

Sole Trader

c)

Partnership

d)

Public Limited Company

15.

Which type of tax do limited companies pay that sole traders and partnerships do not?

a)

Income tax

b)

VAT

c)

Corporation tax