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Worksheets1.2 Types of Business Organizations
Total questions: 30
Worksheet time: 5mins
What term means that if a business fails, the owner is responsible for paying back all debt, even if that means paying with their personal funds/assets?
Limited Liability
Unlimited Liability
Incorporation
Lack of continuity
A disadvantage to Corporations is Limited Liability.
True
False
Which of the following is an example of a private sector organization?
US Post Office
Apple
Unable to determine based on information given
None of the above
Which of the following is an example of a public sector organization?
US Post Office
Apple
Unable to determine based on information given
None of the above
All public sector organizations are publicly traded organizations that you can own shares of their stock.
True
False
All charities are considered non-profit organizations.
True
False
What advantages do members of a Cooperative receive?
Cooperatives do not have members
Members receive no advantages
Members typically receive discounts if they take on part responsibility
Members receive shares of stock of the Cooperative at a lower price than the public
What is purpose of micro-financiers?
To make a profit
To help CEOs expand their corporation
To help those who would not otherwise obtain financing, receiving funding through small loans
None of the above
3. Mary opened a dance studio. She receives all the profits from her students’ lessons.
Sole Proprietorship
Partnership
Corporation
Unger and Unger is a law firm consisting of two brothers who started their own business. They both are responsible for all profits and risks that their firm will have.
Sole Proprietorship
Partnership
Corporation
9. What type of business is described in the diagram below?
Sole Proprietorships
Partnerships
Corporation
10. What characteristic of a corporation is missing from the diagram on the below?
Owner shares the profits with family members only
Stockholders share the profits
Main owner receives the majority of profits
Board of Supervisors has the final say on new products
Which of the following is an example of specialization in a partnership?
one partner does not have liability for the other's debts
one partner wants a neighborhood store, and the other prefers the mall
one partner is a bookkeeper, and the other is a gourmet chef
one partner has more money to invest in the business
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 not a non-profit social enterprise
Amnesty International
Habitat for Humanity
World Wide Fund for Nature
International Baccalaureate Organization
A drawback of public limited company is that they ..
Represent high risks to investors
Have limited liability
Rely on government funding
Have to publish certain financial information to all stakeholders
Which statement does not apply to charities?
They are a type of not-for-profit organization
They promote and raise money for good causes
They are private sector businesses
They are registered as incorporated businesses
A common feature of the commercial sector is ..
All businesses in the commercial sector are companies
One of its aims is to generate profit
The owners run the business
The finance is usually from internal sources
Public limited companies are owned by
Stakeholders
The government
Directors
Shareholders
What group is responsible for carrying out the day-to-day running of a limited liability company?
Board of Govenors
Officers, i.e. CEO, CFO, COO, etc.
Trade Union
Venture Capitalists
The formal document that sets out basic details of a company before it starts trading is known as the
Memorandum of Association
Annual Report
Articles of Association
Deed of Partnership
Who controls a limited company?
The Government
Management and Directors
Customers
Shareholders
The first time the shares of a public limited company are offered for sale on the Stock Exchange is known as a
Sale of assets
Merger
Initial Public Offering (IPO)
Privatization
Cooperatives can be achieved through a collective of the following except
Workers
Agricultural
Consumers
Students
In low-income economies, individuals are able to establish their own businesses with the assistance of
Cooperatives
Public-private partnerships
Macro-financiers
Micro-financiers
Which of the following statement is true:
A charity can also be considered as a non-governmental organization (NGO)
While charities and NGOs are not-for-profit organizations, not all NPOs are charities
Charities do not need to be registered in their respective country of operation.
Non-governmental organization is part of the government
Which of the following type of organization is required by law to publish their final accounts (financial statements) to the public?
Sole trader
Partnership
Private limited companies
Public limited companies
Which of the following is not a disadvantage for a public-private partnership (PPP)?
Involves large sums of money as PPPs tend to be large projects
There is potential conflict of interests between stakeholders of the PPP
The private sector may lack the expertise and skills needed for the project
Private investors might be put off due to the difficulty in estimating the financial returns of the PPP due to its long time period
The following are disadvantages for a partnership except:
Unlimited liability for all partners
Takes longer time to make a business decision than a sole proprietor
There could be a lack of continuity when one partner leaves
Partners work together in harmony
Social enterprises include the following except:
Cooperatives
Partnerships
Charities
Non-governmental organisations
