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WorksheetsBusiness Ownership
Total questions: 15
Worksheet time: 8mins
What is the definition of business ownership?
Refers to the control over an enterprise
The state, act, or right of owning something or possessing something
Refers to the control over an enterprise, providing the power to dictate the operations and functions
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
Which one of these are types of business ownership?
Partnership and corporations only
Sole proprietorship and partnership only
Sole proprietorship, partnership, limited liability company, corporations and cooperative
Sole proprietorship, partnership, public limited company and private limited company
Define sole proprietorship.
A business that can be owned and controlled by an individual for their own benefit
Owned by two or more person
Business ownership that requires high startup costs
The business existence is entirely dependent on the owner’s decisions and the liability is limited
What is the advantages of sole proprietorship?
All profits are subject to the owner
Owners have total flexibility when running the business
There is very little regulation for proprietorship
Ownership of proprietorship is easy to transfer
What is the disadvantages of sole proprietorship?
No additional federal taxes
Owner is 100% liable for business debts
Equity is limited to the owner’s personal resources
Low startup costs
More people in the world start corporations than sole proprietorship.
True
False
Khairulaming owns a part of a corporation. What does he called?
Shareholder
Stakeholder
Chairman
Trust Agent
This type of business organization makes it easier to secure financing because more than one person may apply for credit.
Private Limited Company
Public Limited Company
Sole Proprietorship
Partnership
Which of the following is an advantage of a partnership?
Unlimited Liability
Arguments
Shared responsibility
Less investors
Two Brothers Pizza would most likely show which type of ownership?
Partnership
Sole Proprietorship
Public Limited Company
Private Limited Company
Who is limited liability an advantage to?
Shareholders
Stakeholders
Sole traders
What is the simple difference between a public and private limited company?
A public limited company is public and a private limited company is private
There are no differences
The public limited company can quote shares in a stock exchange while a private limited company cannot
One does not deal with shares while the other does
Which of the following is an advantage of a private limited company?
You can sell shares openly to anybody around the world
You can gain more sales as the business is well known
You can choose your own shareholders that are suitable for the business
They have unlimited liability
A corporation that does not sell stock to the public is called
Private company
Public company
Limited company
None of the above
Private and Public Limited Companies both have
Unlimited Liability
Limited Liability
