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WorksheetsTypes of Business organisations
Total questions: 12
Worksheet time: 7mins
Sole trader businesses are owned and managed by..
2-20 people
Multiple owners
1 person
Partners
Which of the following are advantages of a Public limited company
There is no restriction on the buying and selling or transfers of shares.
There is large opportunity to raise very large capital sum in the business.
All shareholders have limited liability.
Not a seperate legal entity
Which of the following businesses is likely to have the most amount of capital
Partnership
Sole Trader
Public limited
Which of the following are advantages of Private Limited Companies
Unlimited Liability
Seperate legal entity
The company cannot offer shares to the general public
Legal formalities to start up
Number of partners in a partnership business are.....
Unlimited
200 maximum
2 to infinite
2-20 partners
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
Partnership
Sole Proprietorship
Franchise
Private limited company
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.
Sole Proprietorship
Franchise
Partnership
Private Limited Company
Partners who are only responsible up to the extent of their investment
Limited Partnership
Franchisee
Sole Proprietor
Which of the following is the definition for sole proprietorship
business investment that involves renting or leasing another successful business model
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
Which of the following is the definition for Franchise
business investment that involves renting or leasing another successful business model
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
Which of the following is an advantage of a partnership?
Which of the following is an advantage of a partnership?
partnerships can usually attract financial capital more easily than proprietorships.
management is hard between two or more people
They are inefficient.
Which of the following is an advantage of a Franchise?
a nationwide network that had a respected product, a deep product line, excellent quality standards, nationwide advertising, and professional advice whenever needed.
the ease of raising financial capital through stocks, bonds, and loans.
the ease of management between two or more partners
the limited liability protection of a person's assets if the company fails.
