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Business Ownership

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the definition of business ownership?

a)

Refers to the control over an enterprise

b)

The state, act, or right of owning something or possessing something

c)

Refers to the control over an enterprise, providing the power to dictate the operations and functions

d)

It is not a legal entity that separates the owner from the business, meaning that the owner is responsible for all of the debts and obligations of the business

2.

Which one of these are types of business ownership?

a)

Partnership and corporations only

b)

Sole proprietorship and partnership only

c)

Sole proprietorship, partnership, limited liability company, corporations and cooperative

d)

Sole proprietorship, partnership, public limited company and private limited company

3.

Define sole proprietorship.

a)

A business that can be owned and controlled by an individual for their own benefit

b)

Owned by two or more person

c)

Business ownership that requires high startup costs

d)

The business existence is entirely dependent on the owner’s decisions and the liability is limited

4.

What is the advantages of sole proprietorship?

a)

All profits are subject to the owner

b)

Owners have total flexibility when running the business

c)

There is very little regulation for proprietorship

d)

Ownership of proprietorship is easy to transfer

5.

What is the disadvantages of sole proprietorship?

a)

No additional federal taxes

b)

Owner is 100% liable for business debts

c)

Equity is limited to the owner’s personal resources

d)

Low startup costs

6.

More people in the world start corporations than sole proprietorship.

a)

True

b)

False

7.

Khairulaming owns a part of a corporation. What does he called?

a)

Shareholder

b)

Stakeholder

c)

Chairman

d)

Trust Agent

8.

This type of business organization makes it easier to secure financing because more than one person may apply for credit.

a)

Private Limited Company

b)

Public Limited Company

c)

Sole Proprietorship

d)

Partnership

9.

Which of the following is an advantage of a partnership?

a)

Unlimited Liability

b)

Arguments

c)

Shared responsibility

d)

Less investors

10.

Two Brothers Pizza would most likely show which type of ownership?

a)

Partnership

b)

Sole Proprietorship

c)

Public Limited Company

d)

Private Limited Company

11.

Who is limited liability an advantage to?

a)

Shareholders

b)

Stakeholders

c)

Sole traders

12.

What is the simple difference between a public and private limited company?

a)

A public limited company is public and a private limited company is private

b)

There are no differences

c)

The public limited company can quote shares in a stock exchange while a private limited company cannot

d)

One does not deal with shares while the other does

13.

Which of the following is an advantage of a private limited company?

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.

A corporation that does not sell stock to the public is called

a)

Private company

b)

Public company

c)

Limited company

d)

None of the above

15.

Private and Public Limited Companies both have

a)

Unlimited Liability

b)

Limited Liability