WorksheetsCambridge Technical Business Unit 1 LO1
Total questions: 25
Worksheet time: 14mins
Which of the following would be classified as an internal stakeholder of a private limited company?
Central government
Directors
Partners
Pressure groups
A business operated by a sole trader has:
no tax liability
one owner
one shareholder
only one stakeholder
A public limited company:
can sell its shares on the stock exchange
cannot cease trading
has unlimited liability
operates in the public sector
A business produces goods which are of an inferior quality compared to that of its competitors. This is an example of:
a weakness of the business
being competitive
delegation of authority
unethical trading
Which of the following is a political factor which may affect a public sector organisation?
A change in cultural beliefs
A change of government
An improvement in communication technology
An improvement in the standard of living
One purpose of a public limited company’s Annual General Meeting (AGM) is to:
find a venture capitalist
inform employees of future changes
listen to customer viewpoints
meet legal requirements
A partnership is owned by three brothers. The partnership goes bankrupt with debts of £30 000. According to the Partnership Act:
each brother is jointly and severally liable for the full £30 000
each brother is liable for only £10 000 of the debt
the brothers do not have to repay the debt from personal funds
the brothers would only lose the amount they have invested in the business
Which of the following is not a source of finance available to a sole trader?
Bank Loan
Crowd funding
Share issue
Venture capital
Which of the following is an example of an organisation that operates in the public sector?
A charity shop
A clothing manufacturer
A local council
A restaurant
A public limited company:
has unlimited liability
must hold an Annual General Meeting (AGM)
pays income tax
requires a deed of partnership
Which of the following is not an example of a financial objective for a sole trader?
To break even
To make a profit
To pursue own interests
To reduce variable costs
The liability of a partnership is:
a strength of the business
calculated using an income statement
dependent on the number of partners
unlimited
Which of the following is the main business activity of a primary sector organisation?
Extract raw materials
Provide a service
Sell goods on the Internet
Turn raw materials into finished goods
Identify the natural resources that are being exploited in the primary sector? (REM)
Agriculture
Fishing
Forestry
All the above
Relate the secondary sector to the best option? (ANA)
Activities include bringing the products from the secondary sector to the end customer.
Activities include harvesting, collecting or extraction of raw materials.
Processes raw materials and supplies to the shops for the end customers to buy.
All the above
Connect the tertiary sector with the role it plays in the economy. (ANA)
Creates income – contribution to the GDP and provides employment.
Earner of foreign exchange.
Agriculture produces food which is regarded important for a country’s independence from the rest of the world.
All the above
Classify another name for the tertiary sector? (UND)
Farming
Manufacturers
Service industry
All the above
Choose a photo which best describes the tertiary sector? (APP)
All the above
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which of the following is an advantage of operating a large established business as a public limited company?
Shares can be sold to the public to raise additional finance
Financial accounts are published
Shares can only be sold to invited investors to raise finance
Owners have unlimited liability
Which of the following statements is always true of a public limited company?
Shareholders have day to day control of the company
Liability is limited
The ability to expand is limited
Board of directors own the business
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole trader
Partnership
LTD
PLC
