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Business Start Up

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

THREE big choices the entrepreneur

must make are around..

a)

Organisational Options

b)

Production Options

c)

Financial Options

d)

All of the above

2.

Which of these is not an Organisational option?

a)

Sole trader

b)

Partnership

c)

Public Limited Company

d)

Private Limited Company (LTD)

3.

A Sole Trader is a business set up, owned and run by one person. An example would be..

a)

Zara

b)

Manchester United

c)

Farmer

d)

None of the above

4.

Which of these is not an advantage of a sole trader?

a)

Easy to set up

b)

Long hours/ stress

c)

Keep all profits

d)

Decisions made quickly

e)

Confidential type business

5.

Which of these is a disadvantage for a sole trader?

a)

Unlimited liability

b)

Difficult to run - lack skills/experince

c)

No continuity of existence

d)

All of the above

6.

Unlimited liability means the shareholders cannot be held personally liable for the debts of the company, i.e. their personal assets cannot be taken

a)

True

b)

False

7.

A Partnership is a business set up, owned and managed by 2 – ____ partners, e.g. doctors

a)

15

b)

20

c)

4

d)

11

8.

A partnership agreement also called a _________ ___ _________ is an agreement between partners who want to run a joint business.

a)

Certificate of incorporation

b)

Companies registration office

c)

Deed of partnership

d)

None of the above

9.

Which of these is an advantage of a Partnership?

a)

A partnership is not a ‘separate legal entity’ – if a legal issue arises each partner can be personally sued.

b)

Decision-making is slower due to consulting all partners.

c)

More capital is available to pay for the costs of setting up and growing the business

d)

Profits have to be shared in the pre-agreed profit-sharing ratio. This might lead to conflict

10.

Which of these is a disadvantage of a Partnership?

a)

Each partner brings a different skill set to the business.

b)

The partnership should make better decisions as there are other people to consult

c)

It is a confidential type of business – no one else has access to the business’s accounts

d)

The partners have unlimited liability – the general partners will be held ‘jointly and severally liable’ for all of the debts of the business, which may result in the sale of personal assets

11.

A Private Limited Company is a business set up by_ _ _ people, called shareholders, e.g. River Island, Zara

a)

1-150

b)

1-11

c)

2-20

d)

1-149

12.

It is easier to raise _____ – up to 149 people can invest in the company.

a)

Spirits

b)

Capital

c)

Salaries

d)

None of the above

13.

AGM...

a)

Annual General Meeting

b)

Annually General Meeting

c)

Annual Good Meeting

d)

None of the above

14.

A Private Limited company is run by _______ who are voted in by _______ at the Annual General Meeting (AGM).

a)

Shareholders & Directors

b)

Directors & Shareholders

c)

Managers and Employees

d)

None of the above

15.

An advantage for Private limited company is they pay less tax on their profits than sole traders or partnerships, this tax is?

a)

USC

b)

Corporation tax.

c)

PAYE

d)

Local Property Tax

16.

The Rate of Corporation Tax in Ireland is ____%

a)

10%

b)

15%

c)

12.5%

d)

22%

17.

One of the legal documents in the set up of LTD companies is Certificate of incorporation which is like the?

a)

Creation Cert

b)

Birth Cert

18.

This involves the production of a single product. Each product is individual and unique.

a)

Job

b)

Batch

c)

Mass

19.

- Made to order

- Highly skilled

- Expensive

a)

Batch

b)

Job

c)

Mass

20.

This system allows for a specific quantity of one good to be manufactured before the same machinery is used to produce a specific quantity or batch of a similar product

a)

Mass

b)

Batch

c)

Job

21.

- Made in advance

- Same for each customer

- not as highly skilled as job

- economies of scale

- newspaper

a)

Job

b)

Batch

c)

Mass

22.

This involves the continuous production of very large quantities of identical products.

a)

Mass

b)

Batch

c)

Job

23.

Mass requires a highly automated production process and is capital intensive, e.g. CAM

a)

Cloud Aided Manufacturing

b)

Computer And Manufacturing

c)

Computer Aided Manufacturing

d)

None of the above

24.

Examples of mass produced products are....

a)

Pens

b)

Toilet Paper

c)

Canned goods

d)

All of the above

25.

Which production has the lowest cost of all 3 ?

a)

Job

b)

Batch

c)

Mass

26.

USP is Unique Selling Price

a)

True

b)

False

27.

Volvo's USP is...

a)

Speed

b)

Comfort

c)

Safety

28.

A Business plan sets out the ____ & ______ of the business.

a)

Objectives

b)

Strategies

c)

Goals

d)

All of the above

29.

Which os these is not a section of the business plan?

a)

Description

b)

Market Analysis

c)

Production Plan

d)

Operational Plan

30.

Which of these is a reason for the importance of a Business plan?

a)

Convince Investors

b)

Control

c)

Guide for business

d)

Anticipate problems

e)

All of the above